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Draft of IFRS Report for Trinity Industries

Robert Shulzinsky

Southern New Hampshire University

Draft of IFRS Report for Trinity Industries

Trinity Industries Inc. has become certain advancement as far as internal control structure is concerned. The main aim of the structural and operational changes is to improve the functionality while addressing the alarming issue of material weakness. One of the main issues that have affected the company is the compliance to SOX guidelines. In the first year, the management and the general workforce face hectic time trying to conform to the standard guidelines. Currently, the company celebrates many achievements despite some evident drawbacks in the operational process. The use of bottom-up method of risk assessment is comprehensive though still creates alt of cost and capital gaps. This reduces the efficiency of the method. This method is tedious and time-consuming hence less effective compared to other available methods (Ammons, 2014).

The interest to adopt the top-down approach of risk assessment will enable Trinity Industries meet the set SOX standards. The standards ensure efficient documentation procedures, checking of data, storage and retrieval. In implementing the strategy, the company will have general control of the processes which reflects to effective internal data control. Appropriate data management requires the use of best software tools. The proposed Oracle Software is beneficial compared to other available market software like the Riminis Streets Software. The software offer predictive data analytics, diverse customer management platforms and better sales solutions. This makes the future of the company bright. Nevertheless, shifting from bottom-up approach to top-down approach of risk assessment is essential. Other than the many strengths of top-down approach of risk assessment, it ensures SOX Compliance hence a standard technique.

Currently, the company has tried to meet the compliance standards but there is a lot to be done. The effective implementation of the SOX Compliance will ensure that the industries operate at its optimal which substantial security for data and efficient record management. The workforce force is a sensitive pillar of the internal control structure. Initiation of training of workforce with change management campaigns will propel the management towards achieving efficiency and effectiveness in control. According to the current audit, the operational gaps and breaches still exist though relatively fewer compared to the prior years. The general assumption is that with a robust managerial structure the company will improve drastically (Schultze, 2011).

Ideally, the company is still battling with the SOX compliance threshold. Like other industries, a strong internal control will facilitate the process of system changes. A detailed action plan with well-defined implementation team should be built to spear-head the process. Meeting these compliance demands will minimize the SOX related expenses that the company has accrued over the years. Above all, it will minimize the errors in financial records, data compiling and overall breach in data handling that may result from non-compliance to the set guidelines.

References

Ammons, D. (2014). Municipal Benchmarks: Assessing Local Performance and Establishing Community Standards. Routledge

Schultze, U. (2011). The SOX compliance journey at Trinity Industries. Journal of Information Technology Teaching Cases.