Sarbanes-Oxley (SOX) Audit Readiness Checklist
This comprehensive sarbanes-oxley (sox) audit readiness checklist ensures regulatory compliance with SEC, PCAOB, FDIC, SOX Section 404, AS 2201. Annual SOX Section 404 internal control readiness assessment for public financial institutions covering management assessment of internal controls over financial reporting (ICFR), control testing documentation, deficiency evaluation, and external auditor support per PCAOB AS 2201 and SEC Release No. 33-8238. Complete all sections to maintain compliance
- Industry: Financial Services & Banking
- Frequency: Monthly / Quarterly
- Estimated Time: 60 minutes
- Role: Compliance Officer / Branch Manager
- Total Items: 19
- Compliance: SEC, PCAOB, FDIC, SOX Section 404, AS 2201
Scope and Risk Assessment
Verify SOX scoping per PCAOB AS 2201.
- Has annual risk assessment been completed identifying significant accounts and relevant financial statement assertions?
- Are all significant accounts and disclosures included in ICFR scope with documented rationale?
- Are entity-level controls (control environment, risk assessment, monitoring) documented and assessed?
- Are IT General Controls (change management, access control, operations) within SOX scope?
- Have key controls (those that alone or in combination prevent material misstatement) been identified for testing?
Control Documentation and Design
Verify control documentation quality.
- Are Risk and Control Matrices/Flow Charts (RCDs) current reflecting actual processes as performed?
- Does each key control address specific financial statement assertions (existence, completeness, accuracy, valuation)?
- Are segregation of duties controls documented for all significant transaction processes?
- Are interfaces between financial systems documented with controls addressing completeness and accuracy of transfers?
- Has a specific control owner been designated for each key control?
Control Testing and Evidence
Verify control testing per PCAOB AS 2201.
- Is annual control testing plan in place with risk-based sample sizes for each control frequency?
- Has operating effectiveness testing been completed for all key controls per testing plan?
- Is test evidence appropriately detailed showing the control operated as designed for tested instances?
- Are control exceptions immediately reported to control owners and assessed for deficiency classification?
- Is deficiency remediation tracked with target dates and validated by re-testing?
Deficiency Evaluation and Reporting
Verify deficiency evaluation per SEC and PCAOB requirements.
- Are written criteria in place for classifying deficiencies as control deficiency, significant deficiency, or material weakness?
- Are all significant deficiencies and material weaknesses reported to audit committee per SOX Section 302?
- Is management's assessment of ICFR effectiveness prepared and available for Section 404 report?
- Is audit support package (walkthroughs, test workpapers, key evidence) prepared for external auditor reliance?
Related Financial Services Banking Checklists
- Mortgage Loan Origination Compliance Checklist
- Bank Cybersecurity Risk Assessment and Controls Checklist
- FINRA Broker-Dealer Compliance Inspection Checklist
- Deposit Operations and Regulatory Compliance Checklist
Why Use This Sarbanes-Oxley (SOX) Audit Readiness Checklist?
This sarbanes-oxley (sox) audit readiness checklist helps financial services & banking teams maintain compliance and operational excellence. Designed for compliance officer / branch manager professionals, this checklist covers 19 critical inspection points across 4 sections. Recommended frequency: monthly / quarterly.
Ensures compliance with SEC, PCAOB, FDIC, SOX Section 404, AS 2201. Regulatory-aligned for audit readiness and inspection documentation.
Frequently Asked Questions
What does the Sarbanes-Oxley (SOX) Audit Readiness Checklist cover?
This checklist covers 19 inspection items across 4 sections: Scope and Risk Assessment, Control Documentation and Design, Control Testing and Evidence, Deficiency Evaluation and Reporting. It is designed for financial services & banking operations and compliance.
How often should this checklist be completed?
This checklist should be completed monthly / quarterly. Each completion takes approximately 60 minutes.
Who should use this Sarbanes-Oxley (SOX) Audit Readiness Checklist?
This checklist is designed for Compliance Officer / Branch Manager professionals in the financial services & banking industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.