SOX Compliance Summary

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II. First Year of SOX Compliance

A. Success

There are many aspects that contribute to Trinity Industries Sarbones-Oxley (SOX) compliance in their first year. It was described by the Vice President and Chief Audit executive as a "likely candidate for a material weakness" within the first year of SOX compliance; however, no material weaknesses were discovered. Trinity Industries was a very successful business, who continuously strived to improve, but when it came to compliance, they faced the same issues that many other businesses had as well. Trinity industries was thought to be a likely candidate for material weakeness due to their disparate nature of it's accounting systems. Trinity Industries, had issues with the process and control …show more content…

There are 22 business units that were investigated and they thoroughly reviewed all reporting processes.Trinity Industries, hired external consultations to create and put a plan in place for a future project plan for converting their systems over to one consolidated system. It was also suggested that training should be provided to all employees, monitor controls and close any gaps. SOX, helped them identify the areas of controls and reporting weakness that needed to be focused on and corrected. After thourough review of these areas, Trinity industries consolidated their various reporting systems into one centeralized system they developed the accounting service center. The accounting service center offers provided centralized, outsourced services for routine, organization-wide transaction processing" (Schultze, …show more content…

It is understood that management will be held for meeting the requirements for the compliance. PCAOB, Standard No. 5 sets requirements pertaining to the selection of controls that need to be testedand the nature, timing and extent of test of controls in an audit of internal control over fiananical reporting. (PCAOB) There are eleven sections covered under SOX complainance, one of the most important areas are found under Section 302, internal certification of controls; Section 302 was created to make the company respibsible for having internal controls procedures set and to make sure that finanical statements are accurate and another important section is Section 404, the assessment of internal

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