SOx Finance Auditor Internship

1. SOx Finance Auditor Internship Angelita Chandra

2. Overview • Beckman Coulter, Inc. • Sarbanes-Oxley (SOx) • Internship Experience

3. Beckman • pH Meter Inventor • Launched Beckman Instruments in 1935 • Went public in 1952 • 2004 Lifetime Achievement Award of the National Inventors Hall of Fame Dr. Arnold O. Beckman 1900 - 2004

4. Coulter • Discovered The Coulter Counter Principle • Established Coulter Electronics, Inc. in 1958 • In Oct. ’97, Coulter Corporation was acquired by Beckman Instruments, Inc.

5. Beckman Coulter, Inc. • Biomedical company • Public company (NYSE: BEC) • 130 countries; 10,000 employees • Annual Sales $2.44 billion in 2005 • Wide range of customers • Competitors: J&J, Bayer, Roche • Barriers to entry: R&D investment and technical infrastructure; FDA approval

6. What is SOx?

7. SOx • The Sarbanes-Oxley Act of 2002 • United States federal law • Major corporate and accounting scandals • Act’s key provisions: • PCAOB(Public Co. Accounting Oversight Board) • Auditor independence • Corporate governance • Enhanced financial disclosures

8. Sarbanes-Oxley RequirementsComparison of Sections 302, 404, 409 and 906

9. SOx Objectives • Objectives – Internal controls should be designed to provide reasonable assurance on: • Effectiveness and efficiency of operations • Reliability of financial reporting • Compliance with laws and regulations • The Company’s SOx process narratives and testing of key controls are to support the reliability of our financial reporting.

10. What SOx Auditors Do • Quality control of SOx narratives ensures proper internal controls are established and all identified financial risks are mitigated • Upload the templates to Internal Control Management (ICM) • Walkthrough • Testing

11. Intern’s Responsibilities • Update narratives • Create testing templates (risks and controls, audit procedures) • Upload templates  ICM • In ICM: create audit engagement, update information • Upload narratives  EDMS • Sample selections for testing • Testing

12. Example:Manufacturing Inventory - Cycle Count • Description: • Periodic inventory counts • Cycle counting produces a unit count accuracy of equal to or greater than 90%. • Cycle count accuracy is reported in monthly Cycle Count Summary report.

13. Risks – Cycle Count • All inventory is not counted • Cycle Count adjustments are not made to the Oracle G/L • Cycle Count adjustments are not researched and approved

14. Key Controls – Cycle Count • Automatic review of ABC methodology • Reports of new parts to be counted next quarter • Approval of cycle count variance adjustments • Higher level review of Cycle Count Summary

15. Update Narrative

16. Risk & Control Template Audit Procedure Template

17. Upload Risk & Control Template Upload Audit Procedure Template

18. Create Audit Engagement

19. Test Performed

20. Internship • How? • Email from Accounting Dept. • Qualifications: • Pursuing a degree in Accounting or related field • Audit course (ACC 419) is a plus

21. Challenges & Obstacles • Computer access • Technical terms • Timing • Project Management • System • Lack of SOx Audit experience

22. Overall Experience • Wonderful! • Learn about how different processes work • Opportunity to use what I studied in school • Real work experience • Improving my skills • Networking • Intern fun activities

23. Thank You Questions?