2. NorCalOAUG Training Day Sarbanes Oxley Act of 2002 Complaince initiative for all public companies –in fiscal reporting –audit of controls for manual tasks –and audit of system controls Panel Discussion to understand compliance initiative impact on IT

3. PCAOB Release No. 2005-023 November 30, 2005 The inefficiencies observed by the Board varied in form and degree among firms and engagement teams

4. PCAOB Release No. 2005-023 November 30, 2005 Some auditors did not integrate their audits of internal control with their audits of financial statements

5. PCAOB Release No. 2005-023 November 30, 2005 Some auditors did not effectively apply a top- down approach To varying degrees, auditors often approached the audit of internal control from the bottom up The Board expects that auditors will use a top- down approach to a greater extent in the future This will make audits both more effective and more efficient

6. PCAOB Release No. 2005-023 November 30, 2005 Auditors often appeared to take a uniform approach to their testing, inadequately considering the unique risk factors within each company As a result, some auditors appeared to have expended more effort than was necessary in lower-risk areas

7. PCAOB Release No. 2005-023 November 30, 2005 Some auditors performed inefficient, and sometimes ineffective, walkthroughs of major classes of transactions They used different transactions to test each control separately rather than walking a single transaction through the entire process

8. PCAOB Release No. 2005-023 November 30, 2005 Some auditors did not use the work of others to the extent permitted by Auditing Standard No. 2 This will most likely make more efficient use of their time performing their audits of internal control

9. NorCalOAUG Training Day Moderator –Mohan Iyer Board Member since inception of the NorCalOAUG He can be contacted at mohan@norcaloaug.org mohan@norcaloaug.org Mohan is a Principal Consultant at FSCP Solutions Inc.

10. NorCalOAUG Training Day Panel Members –Prasad Gullapali from FormFactor –Kavita Khatwani from Xilinx –Krista Ladd from Silicon Image –Scott Tang from Echelon