SOX Compliance Audit Services
Privately held insurers who meet a certain threshold of revenue are required to submit financial reports to their state’s insurance department. These reports provide details about the internal controls used by management for their statutory financial statements when undergoing an annual audit. Management should be able to provide an assessment of their internal controls and the effectiveness of these controls to ensure accurate financial reporting about the company’s recent fiscal year. To comply with financial reporting rules, insurers have adopted the requirements stated in the Annual Financial Reporting Model Regulation, also known as the Model Audit Rule (MAR).
I.S. Partners, LLC specializes in performing internal audit preparedness engagements for insurance companies and our staff of audit professionals possesses a high degree of expertise in the areas of Sarbanes-Oxley compliance, insurance regulatory compliance, risk assessments, process documentation, control testing and validation, and the creation of effective self-assessment programs.
SOX Audit Requirements
SOX audits should take place once a year by an independent auditor. This engagement should be managed separately from internal audits being conducted at the organization to avoid any conflicts of interest. By planning for the audit in advance, your organization can include the results in the annual financial report for stockholders.
SOX compliance also demands that annual financial reports include an Internal Controls Report which attests to the accuracy of the data reported and the use of the appropriate data security controls. The scope of the auditing includes reviewing controls, policies and procedures. It verifies compliance with control, network, access control and data security monitoring practices.
Our Seamless SOX Audit Process
SOX compliance should be thought of as more than an audit you need to pass. Through best practices, SOX compliance will inevitably create greater value in your organization and can have several tangible benefits for your business.
SOX compliance auditing must be performed by certified external auditors. Initially, you should plan to meet with your auditing firm beforehand to discuss timing, what will be covered, and what results you can expect to see. Then, staff interviews will likely be arranged as part of the SOX auditing process to verify employee responsibilities and training regarding financial data.
Our comprehensive SOX auditing services ensure that controls are in place and operating effectively to meet the company’s obligations. By following the MAR standards, I.S. Partners, LLC auditors verify that the appropriate controls have been established and tested, then provide attestation reports for insurers and decision-makers.