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Prepping Your ERP for SOX: Lessons from Unicorns

SOX compliance for NetSuite starts with a two-tiered review of your systems and controls. First is the ‘Management’ audit: Section 404(a). 404(a) is an annual evaluation of a company’s internal controls over financial reporting (ICOFR). It should involve a thorough review and risk assessment of your processes around financial data and financial reporting. The goal is to identify where controls are needed to mitigate risk. If that wasn’t fun enough, 404(a) is only the precursor to the full external audit required by Section 404(b). This is where your external auditors will come in and ask: have the risks identified in Section 404(a) been mitigated? Have any risks been overlooked?

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