System of internal control/ Sarbanes Oxley

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The Sarbanes Oxley Act is a US federal law that applies to US and foreign entities and their subsidiaries whose securities are traded on US national securities exchanges, or whose equity securities are traded in the USA off the counter, or whose securities are offered publicly in the USA. The goal of the Act was to restore investors’ confidence in the accuracy and reliability of companies’ financial data after a series of accounting scandals. Under section 404, management must assess the effectiveness of the internal control structure related to financial reporting, and the auditor must also assess it. These regulations apply to both annual and quarterly reporting.

Internal control in the annual audit

The system of internal control related to financial reporting is usually audited under IDW PS 261 as part of the audit of the financial statements or of the group audit under German GAAP. The audit of the system of internal control is also an integral component of integrated audits of financial statements relevant to the SEC. For these, a separate audit opinion is issued on the effectiveness of the system of internal control.

Management support

We also offer management support (outsourcing) for the introduction and internal audit of the system of internal control. 

Our services

• Audits of the systems of internal control under IDW PS 261
• US GAAP full scope integrated audits
• SOX audits and SOX assessments
• SOX outsourcing and management support
  Internal auditing