How to prevent blind spots in your SOX program

🔍 How to Conduct a SOX Risk Assessment A strong SOX program begins with one thing — a risk assessment that focuses testing where it matters most. Here’s how to do it 👇 💡 Step 1: Define the Scope 🎯 Identify key systems and processes tied to financial reporting. 🗂 Map applications, databases, and integrations. 📈 Outcome: Clear list of in-scope systems linked to material accounts. ⚖️ Step 2: Identify Key Risks 🧩 Assess what could lead to material misstatement. 🤝 Collaborate with Finance, IT, and Internal Audit. 📋 Outcome: Comprehensive SOX risk register. 🧠 Step 3: Map Controls to Risks 🔗 Align ITGCs and business process controls to each risk. 🕵️♀️ Identify gaps, redundancies, or missing coverage. 📊 Outcome: Updated risk-control matrix aligned with COSO & COBIT. 🧱 Step 4: Evaluate Control Design 🧾 Confirm ownership, frequency, and evidence. 📚 Perform walkthroughs to validate design effectiveness. 🏗 Outcome: Control ratings (Effective / Needs Improvement). 🚀 Step 5: Prioritize & Document 🧮 Rank risks by materiality and control strength. 🖋 Present results to management & Audit Committee. 📘 Outcome: Management-approved SOX risk assessment to guide the year’s plan. ⚠️ Common Challenges 🚧 Over-scoping low-risk systems → ✅ Tie to financial materiality 🚧 Misalignment between IT & Finance → ✅ Run joint workshops 🚧 Static assessments → ✅ Refresh after major changes 🚧 Poor documentation → ✅ Keep a consistent evidence trail ✅ Key Takeaway: Your SOX risk assessment defines everything that follows — scope, testing, remediation, and audit success. Get this right, and the rest flows smoothly. #SOX #ITAudit #Compliance #InternalAudit #TechRisk #SOXCompliance #RiskManagement #COSO #COBIT

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💡 The 7 Trickiest Parts of SOX Compliance and How I’ve Seen Teams Handle Them Better Everyone talks about SOX as a “structured” process — but the real challenges often lie in the grey areas that no checklist covers. After working across multiple organizations, these are the parts I’ve found trickiest (and where the most learning happens): 1. Scoping & Risk Assessment : Getting the scope right is half the battle. Too narrow — and you miss key risks. Too broad — and you end up testing controls that add no value. The balance lies in aligning scope to materiality, business change, and risk ratings — and documenting the rationale clearly. 2. ITGCs & IPE Validation : This is where many programs stumble. A weak ITGC or incomplete IPE validation can impact several controls at once. Ensuring completeness and accuracy of system reports or queries is non-negotiable. 3. Control Design Effectiveness : I’ve often seen controls “operating” but not actually designed to mitigate the right risk. Asking the simple “who, what, when, and how” questions during walkthroughs saves a lot of pain later. 4. Sample Selection & Population Completeness : Testing is only as good as your population. If it’s incomplete or filtered, results won’t hold. Always tie population back to system logs or source data — not just what’s shared by process owners. 5. Remediation & Retesting : The toughest part isn’t identifying issues — it’s ensuring they’re remediated in time and effectively. The focus should be on addressing the root cause, not just the symptom. 6. Management Review Controls (MRCs) : These are always the trickiest. They rely heavily on judgment and precision, yet are often poorly documented. Capturing what was reviewed, why, and how exceptions were handled makes a big difference. 7. Alignment Between SOX, IA & External Auditors : Misaligned expectations can double the work. Early alignment on scope, timing, and documentation standards saves everyone effort — and avoids surprises later. Final thought: SOX isn’t just about compliance — it’s about strengthening the organization’s control culture. When teams start looking beyond “testing” and focus on understanding the why behind controls, that’s when SOX starts adding real value. #SOX #InternalAudit #GRC #RiskManagement #Controls #Compliance

Understanding the COSO Framework — The Backbone of Internal Control In the world of internal audit, risk management, and governance, the COSO Framework stands as one of the most widely recognized models for establishing an effective system of internal control. Developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the framework helps organizations achieve objectives, manage risks, and strengthen governance across three key categories: 🎯 1️⃣ Operations: Effectiveness and efficiency of operations 📊 2️⃣ Reporting: Reliability and integrity of financial and non-financial reporting ⚖️ 3️⃣ Compliance: Adherence to laws, regulations, and internal policies At its core, the COSO Framework is built on five interrelated components, each supported by 17 principles: 🧩 1. Control Environment The foundation of all internal control. It reflects the organization’s culture, integrity, ethical values, governance, and commitment to competence. “Tone at the top sets the strength of control.” 🔎 2. Risk Assessment A dynamic process for identifying and analyzing risks that may hinder the achievement of objectives. It involves setting clear objectives, identifying risks, assessing their likelihood and impact, and managing change. ⚙️ 3. Control Activities These are the policies, procedures, and actions that help ensure management directives are executed. They exist at all levels and include approvals, authorizations, reconciliations, verifications, and segregation of duties. 💬 4. Information & Communication Ensures that relevant, timely, and quality information flows across the organization — both upward and downward — enabling informed decision-making. 🔁 5. Monitoring Activities Continuous or periodic evaluations of internal control performance to ensure that controls remain effective and deficiencies are addressed promptly. 💡 Takeaway: The COSO Framework is more than a compliance checklist — it’s a blueprint for embedding control consciousness into every process and decision. #InternalAudit #COSO #RiskManagement #Governance #InternalControl #Compliance #AuditProfessionals #Leadership #AuditEoperations

COSO needs to be embraced at all levels of the organization not just limited for the use by assurance providers.

The COSO Guidance on Monitoring Internal Control Systems (Introduction) explains how effective monitoring strengthens an organization's internal control system as part of COSO's Internal Control-Integrated Framework. Monitoring is one of the five components of internal control. It ensures that controls continue to operate effectively over time. Many organizations overlook it, but it helps streamline internal control assessments and reduce unnecessary testing. Monitoring can include: 👉Internal audit testing. 👉Continuous monitoring through IT systems. 👉Reviewing performance metrics for anomalies. 👉Supervisory checks and reconciliations. 👉Board and management self-assessments. 👉Audit committee inquiries and quality reviews. COSO's monitoring guidance emphasizes that ongoing, well-structured monitoring is vital for sustaining effective internal controls and strong governance over time.

🧦 GRC that actually fits your SOX 🧦 Built on monday.com . Backed by KPMG Israel . Governance, risk, and compliance often sound like separate worlds. In reality — they share the same heartbeat. That’s why KPMG Israel built a GRC solution on monday.com that connects them all in one rhythm. A living system where risk feeds control, control informs audit, and insight drives better decisions. And that rhythm starts with SOX. Let’s talk SOX 📑 The module covers it all — from Scoping to Control Matrix, through Testing, Deficiency Management, and Auditor Review. It’s not a maze of spreadsheets — it’s one connected process. 💬 Automations assign controls, trigger reminders, and escalate issues. 🧠 monday AI Sidekick summarizes test results, spots anomalies, and even predicts risk areas based on control history. Imagine this: a Head of HR sees only the controls that touch her function, Finance views its reconciliations, IT monitors change logs — and the audit team sees it all, in one synchronized workspace. That’s GRC in action — not as a framework, but as a conversation. It’s SOX without the spreadsheets. Compliance without the chaos. And governance that finally feels alive. ⸻ Next up: Risk Management — because every control starts with understanding your risks. 👀 Stay tuned. 🪶 Connected GRC — Designed by KPMG Israel . Built on monday.com .

🚨 A fragmented defense is no defense at all. 🚨 “Stronger Together: Aligning Audit, Risk and Compliance for Impact.” Why do silos between Audit, Risk, and Compliance weaken organizations and how can integrated assurance models, guided by frameworks like the Three/Five Lines Model, ISO 37000, COSO ERM, ISO 31000, ISO 37301 and the Global Internal Audit Standards (2024), can transform governance, strengthen resilience and build trust. 👉 The call-to-action is clear: integration isn’t about merging functions, it’s about synchronizing their strengths for strategic governance. A session of clarity by Mathabatha Julius Mojapelo CIA, CRMA, CA(SA), RA (IRBA), BSQP, PEQA Insightful Discussions with Gowtham Shankar JB on Software development #ElevatingImpact

Governance, Risk, and Compliance (GRC): Trio every organization needs. Every strong organization stands on three important legs: Governance, Risk, and Compliance (GRC). Let's make it simple with examples: 1️⃣ Governance 🔹This is about how leaders 🔹Guide the company. It's like the framework of the game. 🔹For example, a board of directors making sure a company follows its vision and values. 2️⃣ Risk 🔹These are possible problems that may come in the way. Just like a driver watching the road for sharp turns. 🔹For example, a bank checking if its loans can be repaid or not. 3️⃣ Compliance 🔹This is about following laws and standards. 🔹Just like students following school rules. 🔹For example, a company making sure it reports taxes correctly and follows safety laws Together, GRC keeps organizations safe, fair, and successful. Good governance sets direction 💡Risk management protects from surprises 💡Compliance ensures trust. 💡Strong organizations don't choose one, they practice all three. #grc #governance #risk #compliance #it_audits #Risk_Management #Corporate_Governance #Audit #is_audits #InternalAudit #InternalControls

DAY 9: COSO Framework: The Five Components of Internal Control After selecting the COSO Internal Control – Integrated Framework for your ICFR implementation, understanding its five components is the next step toward building an effective control environment. Each component plays a unique role but operates together to ensure reliable financial reporting, effective operations, and compliance with laws and regulations. 1️⃣ Control Environment This is the foundation of the entire framework — it sets the tone at the top. It reflects the organization’s culture, ethical values, and governance structure. A strong control environment promotes integrity, accountability, and a commitment to competence across all levels. 2️⃣ Risk Assessment Risk assessment involves identifying and analyzing risks that could prevent the organization from achieving its objectives. It includes considering fraud risks and changes in the internal or external environment. Effective risk assessment ensures controls are designed to address what truly matters. 3️⃣ Control Activities These are the specific policies, procedures, and mechanisms put in place to mitigate identified risks. They include approvals, reconciliations, segregation of duties, and system access controls — ensuring that risk responses are carried out as intended. 4️⃣ Information & Communication This component ensures that relevant, timely, and accurate information flows throughout the organization. Clear communication — both internally and externally — enables employees to understand their control responsibilities and management to make informed decisions. 5️⃣ Monitoring Activities Controls must not only exist but also continue to operate effectively. Monitoring involves ongoing evaluations and periodic reviews to detect and correct deficiencies promptly — ensuring continuous improvement of the internal control system. In summary: These five components work together as an integrated system. Weakness in one can affect the effectiveness of others.