Audit panels are answerable for the detection of the factual financial position of a business. The implication of the excellence of these labors flow all the way through our wealth. Necessities of Section 203 of the Sarbanes-Oxley Act of 2002 (SOX) - which authorize the rotation of the audit group member who bears main responsibility for the audit - began to take impact as just recently as 2007-2008. The capacity for familiarity loss within the audit group by means of this mandated rotation comes with excellent expenses and dangers for all stakeholders, as audit group members have maybe the most intimate knowledge of corporations.
To help in the prevention of knowledge loss and the assistance of knowledge transfer from the outbound to the inbound partner, we recommend 4 main knowledge transfer methods which might be utilized together in the post-SOX environment. These methods are: (1) appropriate preparation of member rotation far in advance of the due date for each partner; (2) factor to consider of tactical fit amongst the inbound partner, the customer, the market, and the group; (3) enhanced documents of the outbound partner's knowledge to be shown the inbound partner; and (4) enhanced interaction amongst the turning partners-outgoing and incoming-and the customer to help in the sharing of important, yet hard to transfer, implied knowledge.
PUBLICATION DATE: November 15, 2009 PRODUCT #: BH359-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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