SOx Finance Auditor Internship

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SOx Finance Auditor Internship

• Angelita Chandra

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Overview

• Beckman Coulter, Inc.
• Sarbanes-Oxley (SOx)
• Internship Experience

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Beckman

• pH Meter Inventor
• Launched Beckman Instruments in 1935
• Went public in 1952
• 2004 Lifetime Achievement Award of the National
  Inventors Hall of Fame

Dr. Arnold O. Beckman 1900 - 2004
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Coulter

• Discovered The Coulter Counter Principle
• Established Coulter Electronics, Inc. in 1958
• In Oct. 97, Coulter Corporation was acquired by
  Beckman Instruments, Inc.

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Beckman Coulter, Inc.

• Biomedical company
• Public company (NYSE BEC)
• 130 countries 10,000 employees
• Annual Sales 2.44 billion in 2005
• Wide range of customers
• Competitors JJ, Bayer, Roche
• Barriers to entry RD investment and technical
  infrastructure FDA approval

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What is SOx?
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SOx

• The Sarbanes-Oxley Act of 2002
• United States federal law
• Major corporate and accounting scandals
• Acts key provisions
• PCAOB (Public Co. Accounting Oversight Board)
• Auditor independence
• Corporate governance
• Enhanced financial disclosures

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Sarbanes-Oxley RequirementsComparison of
Sections 302, 404, 409 and 906
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SOx Objectives

• Objectives Internal controls should be designed
  to provide reasonable assurance on
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with laws and regulations
• The Companys SOx process narratives and testing
  of key controls are to support the reliability of
  our financial reporting.

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What SOx Auditors Do

• Quality control of SOx narratives ensures proper
  internal controls are established and all
  identified financial risks are mitigated
• Upload the templates to Internal Control
  Management (ICM)
• Walkthrough
• Testing

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Interns Responsibilities

• Update narratives
• Create testing templates (risks and controls,
  audit procedures)
• Upload templates ? ICM
• In ICM create audit engagement, update
  information
• Upload narratives ? EDMS
• Sample selections for testing
• Testing

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Example Manufacturing Inventory - Cycle Count

• Description
• Periodic inventory counts
• Cycle counting produces a unit count accuracy of
  equal to or greater than 90.
• Cycle count accuracy is reported in monthly Cycle
  Count Summary report.

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Risks Cycle Count

• All inventory is not counted
• Cycle Count adjustments are not made to the
  Oracle G/L
• Cycle Count adjustments are not researched and
  approved

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Key Controls Cycle Count

• Automatic review of ABC methodology
• Reports of new parts to be counted next quarter
• Approval of cycle count variance adjustments
• Higher level review of Cycle Count Summary

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Update Narrative
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Risk Control Template
Audit Procedure Template
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Upload Risk Control Template
Upload Audit Procedure Template
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Create Audit Engagement
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Test Performed
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Internship

• How?
• Email from Accounting Dept.
• Qualifications
• Pursuing a degree in Accounting or related field
• Audit course (ACC 419) is a plus

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Challenges Obstacles

• Computer access
• Technical terms
• Timing
• Project Management
• System
• Lack of SOx Audit experience

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Overall Experience

• Wonderful!
• Learn about how different processes work
• Opportunity to use what I studied in school
• Real work experience
• Improving my skills
• Networking
• Intern fun activities

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Thank You
Questions?