There are many facets to the Sarbanes-Oxley Act, but one of the main requirements is for the specific attesting to the existence and adequacy of internal controls. This is required of senior management AND the external auditors.
The period end account reconciliation process is often a key element to those controls. Here is what RecWizard can do to make your reconciliation process complete, accurate, clearly documented and easily auditable.
You can find answers to all your questions about RecWizard here on our web site. You can also fill out an info request and we'll call to set up a live demonstration and show you the features that make good accounting sense, and makes SOX compliance an afterthought.
Below is our abbreviated analysis of the Sarbanes-Oxley Act. If you haven't read the Act or want to know more about it's general requirements, read on. It will take about 5 minutes, but you'll know what the overall objectives of the Act are, not just the current buzz phrase of "404 compliance".
Sarbanes - Democrat - was a senator from Maryland. He was the longest-serving senator in Maryland history having served from 1977 until 2007.
<<<------------ The other sponsor of the landmark legislation now known as Sarbox is Michael Garver Oxley - Republican. He served in the House of Representatives from 1981 unitl 2007.
Ten years ago the 107th Congress of the United States passed the Sarbanes-Oxley Act of 2002 ("Sarbox"). This law was enacted by the U.S. government to help restore investor confidence after the Enron and MCI financial scandals.
Sarbox addresses many areas of accounting, financial reporting, and investment company relations. While we will not attempt to describe this Act in depth, here are the main points:
If you want to download your own copy of Sarbox, you can get it at FindLaw. Go to their web site by clicking on their logo...
While good accounting controls and procedures have always been important to well managed companies, Sarbox now requires specific statements to be made by principal officers of the company attesting to the completes and adequacy of the company's internal controls.
RecWizard provides a tool that will help you meet many of the internal control documentation and financial statement accuracy requirements.
- Documentation of levels of Prepare-Approve-Review - unique user names and passwords are used to identify the completion of each step in the account reconciliation management process. As you can see, three different people have been involved in the reconciliation of the following account:
- Financial Statement Accuracy - RecWizard provides a tool to easily prepare, access and review General Ledger account reconciliations to make sure they are completed properly and in a timely manner. Here is a sample of the General Ledger Reconciliation Summary Report:
As you can see, the report shows the last date that your accounts have been reconciled, and what may still exist as an Unidentified Difference. It also shows the level of approval using the hierarchy of Prepared - Approved - Reviewed.
With installation over a networked system, you could even open each reconciliation for review purposes.
- Adherence to Company Policies - RecWizard allows you to input your company's policies into the database so they are available with the click of your mouse every time you prepare a reconciliation. No need to look in a different place for the policies and procedures manual and no excuse for not knowing what the policy is. Here is a sample of the Account Setup screen that is accessible every time the account is reconciled by clicking on a tab:
While this example has only a brief excerpt of the company policy specifically targeting the preparation of this reconciliation, you could add your complete policy to the RecWizard database. Or, you could provide a link to your intranet site that houses your accounting policies so it is easy for your staff to locate the appropriate policy in detail.
You can also see that you can identify Key Control Accounts for special attention and even create a reference to your Consolidation accounting system (such as Hyperion or Cognos) to provide an extra level of review and summarization.
If you think RecWizard can help you improve your accounting and internal controls, then you can do one of the following (or all of them, if you like):
- Contact Us to discuss detailed implementation of a company wide program.
- Go to the Videos page to watch an overview video or run through our PowerPoint presentation.
- Continue searching our site and make sure you review our Tutorial.
- Read through the Features page to get more detailed descriptions of what RecWizard can do.
- Fill out an Info Request to have us get in touch with you.
We hope this information has been helpful and that your efforts to comply with Sarbanes-Oxley include RecWizard.