LogicManager Upgrades Audit Product
LogicManager released an upgrade to its LogicERM enterprise risk management software that takes advantage of the new AS5 risk-based audit standard.
AS5 brings more of a risk-based approach to compliance with Section 404 of the Sarbanes-Oxley Act, which requires companies and their auditors to assess the effectiveness of a company's internal control structure for financial reporting.
LogicERM V.3.0 adds five levels of planning and scoping to the SOX process from the risk-based perspective. The software addresses entity-wide controls, significant accounts and disclosures, prioritization of process risks, separate risk-based scoping of IT general and application controls, and comprehensive risk assessments by process owners.
LogicManager CEO Steven Minsky sees advantages in taking a risk-based approach to complying with SOX requirements. "Traditional solutions have been in the compliance area," he said. "They took a checkbox approach, but didn't improve operations." He estimates that companies using the software will see a 30 to 60 percent reduction in their external audit fees.