Client Snapshot
An offshore oil and gas drilling services provider, employing more than 4,000 people, was undergoing significant organizational transformation following an acquisition and changes in its management structure. These developments introduced new processes, reporting responsibilities, and control requirements ahead of the year-end SOX assessment.
With operations supported by multiple systems and teams located across multiple time zones, viz. US, Southeast Asia, and Europe, the organization required a coordinated approach to bring the newly added entities within its compliance program.
The Challenge
- Incorporating acquired entities into the existing SOX program
- Close coordination with U.S.-based Internal Audit team for alignment across entities in scope
- Establishing controls for newly introduced processes and management responsibilities
- Addressing the absence of consistent testing procedures across locations
- Conducting walkthroughs with stakeholders working across different time zones
- Collecting and evaluating evidence maintained across multiple tools and unstructured data sources
Our Approach
- Reviewed the existing testing methodology, Risk and Control Matrix (RACM), testing scripts, policies, and supporting documentation
- Developed and aligned the audit testing and reporting plan to provide a structured approach to the SOX program.
- Led control walkthroughs and operating-effectiveness testing across the entities in scope and coordinated with U.S. Internal Audit team.
- Maintained cadence with management to review progress, address concerns, confirm additional requirements, and drive potential deficiencies to timely closure through measurable action plan
Results Delivered
- Delivered comprehensive process narratives for key financial reporting processes, documenting the underlying processes, risks, and controls across Southeast Asian and EU operations
- Developed testing attributes for key SOX controls introduced for the newly acquired entity
- Completed IT General Controls testing and recommended relevant Information Produced by the Entity (IPE) procedures
- Identified a critical SOX deficiency and worked with Internal Audit to define a measurable remediation plan
- Provided an improvement roadmap for the end-to-end testing framework, covering the risk and control framework, testing methodology, and required governance updates
Impact Created
Pierag assumed a lead role in executing the SOX program for the client’s subsidiaries across Southeast Asia and Europe, working in close coordination with the U.S.-based Internal Audit team. Through structured governance and effective cross-border coordination, the team successfully managed walkthroughs, control testing, and stakeholder dependencies across multiple geographies and time zones.
The engagement enhanced management’s oversight of international operations, supported the effective integration of the newly acquired entity, and established a more consistent and scalable approach to SOX compliance across the organization.
