Audit teams are responsible for the discovery of the true financial condition of a company. The ripple effects of the quality of these efforts in our economy. Requirements of Section 203 of the bears take until 2008 until 2007 Sarbanes-Oxley Act of 2002 (SOX) mandates, the rotation of the audit team member who started the primary responsibility for the audit effect. The potential for knowledge loss within the audit team asked about this rotation comes with great costs and risks for … Read more »

Audit teams are responsible for the discovery of the true financial condition of a company. The ripple effects of the quality of these efforts in our economy. Requirements of Section 203 of the bears take until 2008 until 2007 Sarbanes-Oxley Act of 2002 (SOX) mandates, the rotation of the audit team member who started the primary responsibility for the audit effect. The potential for knowledge loss within the audit team asked about this rotation comes with great costs and risks for all parties involved, such as audit team members may have the most intimate knowledge of business. To assist in the prevention of loss of knowledge and facilitating knowledge transfer from the outgoing to the incoming partner, we recommend four primary knowledge transfer approaches that can be used in the post-SOX environment. These approaches are: (1) an adequate planning of the rotation member well in advance of the deadline for each partner, (2) consideration of the strategic fit between the incoming partner of the client, the industry and the team, (3) improved documentation, the outgoing partners the knowledge to be shared with the incoming partner,. and (4) increased interaction between the rotating Partner outgoing and incoming and the client in the exchange of critical, but difficult to transfer tacit knowledge support
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from
Christina Butler Sanders,
Michelle D. Steward,
Sheri Bridges
Source: Business Horizons
10 pages.
Release Date: 15, November 2009. Prod #: BH359-PDF-ENG
Facilitate transfer of knowledge during SOX audit partner rotation mandated HBR case solution

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