Roll forward testing takes importance becasue of the period of time over which organizations perform tests of controls. For purposes of Sarbanes Oxley, this period of time normally varies depending upon the nature of control and the frequency with which they operate. In terms of IT controls, testing normally is done during an interim period before the year end. When such roll forward testing is done, i.e. testing before the year end, organizations must collect evidence of operation of controls during the interim period. What evidence to collect and what not to collect is a big question posing many companies during roll forward IT testing. The following pointers below can help companies in answering some of these questions.

1. The better the operating effectiveness of the controls, the lesser the evidence companies need to collect.

2. The shorter the remaining period of the year, the lesser the evidence one needs to gather.

3. The controls already tested and the result of such testing. If postive, roll forward testing can be limited. However, if the controls are not so strong, then roll forward testing needs to be increased.

4. Finally, one additional criteria to consider is that if the financial processes are about to undergo significant change, then roll forward testing in the interim period needs to be adjusted accordingly.

Related Posts

Total Cost of Internal Controls
Evaluating Disclosure Controls & Procedures
Cost Benefit Analysis Before Implementing Controls
IT Governance for Sarbanes Oxley