SOX INTERNAL CONTROLS FOR INVENTORY

Michel Morley

Mike Morley

  • CMA
  • CPA

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Before starting this self study program, please go through the instructional document.

Overview

  • Sarbanes-Oxley Act of 2002
    10 mins
  • Enron Execs Not Alone
    15 mins
  • CEO and CFO Must Certify
    24 mins
  • Accountability
    35 mins
  • Risk of Manipulation
    49 mins
  • Valuation
    61 mins
  • Physical Counts
    72 mins
  • IT Controls
    83 mins
  • Inventory Controls
    91 mins
  • Example of 302 Certification
    99 mins

Course Description

Inventory, often a company’s largest or second-largest asset has a significant impact on both the balance sheet and the income statement. Easily manipulated, it can be hidden, stolen, or simply forgotten. Effective internal controls keep track of inventory and ensure that its proper value is reflected on the financial statements.

The Sarbanes-Oxley Act of 2002 makes company executives of publicly traded US companies personally and criminally responsible for the accuracy and reliability of the financial disclosures of their companies. They are required to sign reports that attest to the effectiveness of their companies’ internal controls, including foreign subsidiaries.

This webinar looks at specific issues affecting Inventory, including 

  • Inventory Risk Management, 
  • The adequacy of Inventory purchasing and stores management oversight, 
  • Dependence on processes outside the Purchasing and Inventory departments and 
  • Dependence on processes outside the company.

This webinar will provide you with the tools you need to establish and maintain strong internal controls in Inventory Management that meet Sarbanes-Oxley standards and reduce risk and protect company assets. 

Major Topics Covered:

  • Accountability
  • Risk of manipulation
  • Purchasing
  • Obsolescence
  • Valuation
  • Inventory returns
  • “Channel Stuffing”
  • Physical counts
  • Inter-company transactions
  • Inventory sent to outside processors
  • Inventory as collateral

The webinar will provide opportunities for discussion on the subject queries.

Learning Objectives

  • To explore how to set up controls for the purchasing process and analyzing the risk to the financial statements
  • To develop customized tools for establishing and maintaining strong internal controls that meet Sarbanes-Oxley standards by reducing risk and protecting company assets
  • To raise your awareness of fraud issues and examining processes to mitigate the risk associated with Inventory Management to comply with SOX
  • To identify the positive impact on both the Balance Sheet and the Income Statement that effective controls can have
  • To answer the 3 important questions required by Sarbanes-Oxley: Is it accurate? Are you sure? Can you prove it?

Who Should Attend?

  • Accountant
  • CPA - Small Firm
  • CPA - Mid Size Firm
  • Accounting Firm
  • CPA (Industry)
  • Young CPA
  • Accounting Managers
  • Certified Public Accountant
  • Bookkeepers & Accountants & Tax Preparers