Sarbox Scooter, Inc. Case 5.6 ofAuditing Cases

You are an internal audit consultant are gearing up to work with Delmoss Watergrant LLP, the external audit firm on the annual audit. You have been charged to assist the management in preparing for the audit of internal control to be done by the external audit firm as required by SOX. You know that management must identify significant accounts and locations for testing its internal controls. Management must provide Delmoss auditors with documentation of its risk assessment and operating effectiveness of controls for each of the components of internal control that relate to relevant assertions in the financial statements. Write a memo identifying the identity-level controls that Delmoss will likely audit. Also, to negate the comments from one senior-level Sarbox Scooter, Inc. manager, you should state why SOX requires that external auditors evaluate and test internal audit controls. You should strongly present a case that external auditors are required to perform that evaluation especially in the post-SOX environment; it is also what Sarbox Scooter is paying for in its annual audit fee. Also, for this senior-level manager, diplomatically explain how SOX came about and is now in force since 2002.

This analysis should be prepared as a Microsoft Word document, and then attached to the unit discussion thread. There is no minimum or maximum in terms of the word count; however, the response should explicitly address all required components of this discussion assignment. The document should be prepared consistent with the APA writing style (6^thedition) and reflect higher level cognitive processing (analysis, synthesis, and or evaluation).

The attached file is the case.