SOX Compliance Audit Checklist – Free | PDF Download

SOX compliance audit checklist template

Our SOX compliance audit checklist provides a clear, digital framework for your audit and compliance teams to systematically verify and document internal controls. This aids you in closing compliance gaps and prepare for audits with confidence. The Association of Certified Fraud Examiners highlights that more than half of cases of occupational fraud stem from weak or bypassed internal controls, making a thorough audit process essential.

Unlike general SOX or department-specific checklists, this template is purpose-built for hands-on audit teams needing actionable, real-time control testing. For broader or specialized requirements, explore our SOX 404 Compliance Checklist or HR SOX Compliance Checklist.

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SOX Compliance Checklist

Management Assessment of Internal Controls

Has operating management taken ownership of their processes and documentation, rather than leaving it to the Section 404 team or the internal auditing function?

Does operating management update all process and control documentation promptly throughout the year and not just when testing starts?

Is there an effective change management process in place, including the timely assessment of process changes for their potential impact on key controls?

Is operating management committed to assess and remediate all control deficiencies promptly?

In situations where remediation is not justified based on management’s assessment of risk and cost, is management committed to communicating that decision promptly so the effect on management’s overall assessment of controls can be identified and discussed with senior management?

Has a top-down, risk-based approach been used to identify the key controls?

Is management confident that all identified key controls are truly key?

Has the design of the related processes been reviewed to determine if changes can result in fewer and more effective controls, relying more on automated controls or on higher-level controls?

Is the management of the Section 404 program at a sufficiently high level within the organization to influence operating management relative to completion of their responsibilities?

Is the management of the Section 404 program at a sufficiently high level within the organization to communicate effectively with executive management the program’s progress and potential issues?

Is the management of the Section 404 program at a sufficiently high level within the organization to negotiate as needed with the external auditor?

Is the use of internal resources optimized, including the use of internal auditors to perform testing or to validate testing performed by management staff?

Has overall staffing been optimized, reducing reliance on more expensive external consultants and testers?

Has reliance by the external auditor on management testing been optimized?

Does the external auditor follow a top-down, risk-based approach as required by AS 5?

Is there a detailed project plan that includes a walk-through of all significant processes early in the year, preferably in the first quarter?

Is there a detailed project plan with testing scheduled in such a way that all key controls are tested by mid-year, with additional testing to update the results scheduled closer to year-end?

Is there a detailed project plan that includes all key activities required to complete the program, such as fraud risk assessment, consideration of any end-user computing issues, assessment of SAS 70 reports from service providers, etc.?

Is there a detailed project plan detailing all required resources, including specialists (e.g., for IT or tax processes and controls), so they can be scheduled early?

Is there a detailed project plan with regular reporting to senior management that focuses on key metrics and issues?

Has there been communication and coordination with all service providers to ensure that a SAS 70 type II report will be available at the appropriate time?

Is early warning provided for potential deficiencies being identified during the SAS 70 audit?

Is the Section 404 program itself assessed for effectiveness on a continuing basis, to ensure it is improved as the organization learns from experience and benefits from changes in regulations or their interpretation?

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Frequently asked questions

What are the key internal controls that must be tested during a SOX compliance audit?

Key internal controls include segregation of duties, access controls, authorization procedures, reconciliations, and documentation processes. These controls help ensure financial data integrity and reduce the risk of fraud or error, which is a core requirement under SOX regulations.

What are the most common pitfalls leading to SOX compliance failures?

Common pitfalls include inadequate internal controls, lack of regular testing, poor documentation, and insufficient employee training. Overriding controls or failing to update procedures after organizational changes can also result in non-compliance and increased risk of fraud.

How can businesses streamline their SOX compliance audit process?

Businesses can streamline SOX compliance audits by digitizing checklists, automating data collection, assigning clear responsibilities, and conducting regular training. Using digital tools allows for real-time tracking, better documentation, and more efficient collaboration across departments and locations.

What are the consequences of failing a SOX compliance audit?

Failing a SOX compliance audit can result in hefty fines, legal action, loss of investor confidence, and reputational harm. For public companies, it may also lead to delisting from stock exchanges and increased scrutiny from regulators, making robust compliance essential.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.