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A specialty pharmaceutical company with an established Internal Audit and SOX Compliance program faced a critical staffing shortage during a bankruptcy filing. The Internal Audit team lacked the resources necessary to complete mandatory control testing for the current-year SOX audit. They needed a trusted partner to ensure continuity and timeliness in meeting internal and external audit requirements, particularly in testing financial and IT controls.
We initially performed SOX control testing across financial and IT domains throughout four key audit phases. Working within the client’s audit framework and utilizing lead sheets and audit software (Align), our team streamlined communication, documentation and workpaper management. We provided daily and weekly updates to ensure alignment with client expectations.
As the company moved into financial restructuring, we expanded our support, supplying an experienced team to manage year-round SOX financial and IT testing needs. In addition, we launched a direct-assist initiative with the client’s Big Four external auditor. Through this program, our consultant worked directly with the client’s external auditor and internal team, performing SOX testing on their behalf, which helped reduce external audit fees.
Over two consecutive years, our work enabled the client to maintain SOX compliance without disruption despite significant internal resource challenges. Testing phases were completed on time, consistently meeting external auditor requirements and preserving reliance on key controls, particularly for IT General Controls (ITGCs). The direct–assist arrangement not only strengthened our collaboration with the client’s external auditor but also generated meaningful cost savings on external audit fees. Our continued partnership with the client for both SOX testing and direct–assist support reflects the client’s confidence in our ability to sustain their compliance program while adapting to changing business needs.