MacrosLM
Audit & Controls
SOX 404(b) / ICFR / CASE: PEABODY PROPERTIES
AUDIT TEARSHEET · SOX 404(b) CONTROL TESTING · FY2024
Peabody Properties · SOX control testing — year-end results
42 in-scope controls tested across revenue, P2P, payroll, ITGC, and close. 38 effective, 3 deficient, 1 escalated to material weakness candidate.
CLIENT PEABODY PROPERTIES LLC · PERIOD FY DEC-2024 · SCOPE ICFR 404(b) · TEAM MacrosLM Audit
Controls in scope
42
7 business cycles
Effective
38
90.5% pass rate
Deficiencies
3
Process / design gaps
MW candidates
1
Pending audit committee
01SCOPE MAP
02RESULTS BY CYCLE
§ 01Scope and control inventory
Per PCAOB AS 2201, the in-scope control population was identified through top-down risk assessment. Coverage spans 7 transaction cycles plus IT general controls. Frequency mix: 17 daily, 14 monthly, 8 quarterly, 3 annual.
Engagement parameters
- Standard
- PCAOB AS 2201
- Filer status
- Accelerated · 404(b)
- Materiality
- $1.85M · 5% PBT
- Pop. materiality
- $370K
- Method
- Risk-based, top-down
- Test approach
- Inquiry + inspection + reperformance
- Period
- Roll-fwd Sep-Dec 2024
Controls in scope · by cycle
| Cycle | Controls | Auto | Manual | Key | Risk rating |
|---|
| Revenue (rental income) | 9 | 3 | 6 | 5 | High |
| Procure-to-Pay | 8 | 2 | 6 | 4 | High |
| Payroll | 5 | 2 | 3 | 2 | Moderate |
| Treasury & Cash | 4 | 1 | 3 | 2 | Moderate |
| Financial close | 7 | 1 | 6 | 3 | High |
| Fixed assets / Real estate | 4 | 0 | 4 | 2 | Moderate |
| IT general controls | 5 | 5 | 0 | 5 | High |
| Total | 42 | 14 | 28 | 23 | — |
§ 02Test results by cycle
Aggregated test outcomes across all 42 in-scope controls. Pass criteria: zero unexpected exceptions on key controls; deviation rate below 5% on routine controls. Sample sizes computed per AICPA AAG-SAM table.
Control test summary · by cycle
| Cycle | Controls | Sample size | Pass | Deviations | Rate | Cycle status |
|---|
| Revenue | 9 | 405 | 8 | 1 | 11.1% | 1 deficient |
| Procure-to-Pay | 8 | 360 | 7 | 1 | 12.5% | 1 deficient |
| Payroll | 5 | 225 | 5 | 0 | 0.0% | All pass |
| Treasury | 4 | 120 | 4 | 0 | 0.0% | All pass |
| Financial close | 7 | 84 | 7 | 0 | 0.0% | All pass |
| Fixed assets | 4 | 90 | 4 | 0 | 0.0% | All pass |
| ITGC | 5 | 75 | 3 | 2 | 40.0% | 2 deficient · 1 escalated |
| Total | 42 | 1,359 | 38 | 4 | 9.5% | — |
Of the 4 raw deviations, 1 was determined to be a non-deficiency (single occurrence on a routine control with offsetting compensating controls); 3 are flagged as control deficiencies for management response.