Facilitating Knowledge transfer during SOX-Mandated Audit Partner Rotation Harvard Case Solution & Analysis

Audit team responsible for the discovery of the true financial condition of the business. The consequences of the quality of these efforts ripple throughout our economy. Requirements of Section 203 of the Sarbanes-Oxley Act of 2002 (SOX)-which provides for rotation of members of the audit team, which has primary responsibility for the audit has begun to take effect as recently as 2007-2008. The potential loss of knowledge in the audit team through the mandate of rotation comes with high costs and risks for all parties concerned, as members of the audit team have, perhaps, the most profound knowledge of the business. To help prevent the loss of knowledge and promote the transfer of knowledge from the outgoing to the incoming partner, we offer four basic knowledge transfer approaches that can be used together in the post-SOX environment. These approaches are: (1) a member of the rotation of adequate planning long before the deadline for each partner, and (2) consideration of the strategic fit between the incoming partner, customer, industry, and the team, and (3) improved documentation outgoing partner to share knowledge with the incoming partner, and (4) the expansion of cooperation between the rotating partners outgoing and incoming and client to assist in the exchange of critical, but it is difficult to convey tacit knowledge "Hide By Christine Butler Sanders, Michael D. Stewart, Sheri Bridges Source: Business Horizons 10 pages. Publication Date: November 15, 2009. Prod. #: BH359-PDF-ENG

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Facilitating Knowledge transfer during SOX-Mandated Audit Partner Rotation

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