Northbridge Instruments, Inc.
NASDAQ: NBRI · FY26 · Materiality $21.4M
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SOX · Testing

AI Testing Workspace

Tessa (Staff Auditor Agent) is testing R2C-014. Every step — population, sampling, attributes, tickmarks, conclusions — is documented as it happens and reviewed by a Senior Auditor Agent.

Controls in testing
34
94 of 128 complete
Samples tested (Q3)
1,842
82% by AI agents
Exceptions open
3
1 awaiting judgment
Review notes open
2
Avg. clearance 9 hrs

R2C-014 — Credit memos above $25K require secondary approval

Population validated, 45 samples selected under methodology §7.3

Exception
Population
1,284 credit memos over $25K (GL 41200)
Population validated
Reconciled to GL, record count agreed
Sample size
45 — high risk, ongoing frequency
Progress
72%
#DocumentAmountDateApproverApproval obtainedApprover authorizedApproval before postingAmount agrees to supportBusiness reason documentedTMResult
1CM-114208$48,200Jul 06L. TrentA BPass
2CM-114331$92,750Jul 14L. TrentA B CPass
3CM-114402$27,400Jul 19M. OzturkAPass
4CM-114577$310,900Aug 02A XException
5CM-114612$35,000Aug 07L. TrentA BPass
6CM-114744$61,300Aug 15R. SalasA BPass
7CM-114890$29,850Aug 23L. TrentAPass
8CM-115003$154,600Sep 01R. SalasA B CPass
Tickmark legend
  • AAgreed to credit memo document in NetSuite
  • BApproval evidenced in workflow history with date/time stamp
  • CRecalculated amount against original invoice
  • XException — see exception EX-119

Exception EX-119

Sample 4 — CM-114577

Discovered by
Tessa (Staff Auditor)
Discovered
Sep 15, FY26
Severity
Under evaluation
Status
Awaiting human judgment

Credit memo of $310,900 posted without required secondary approval.

Nova · Data Analytics Agent

7 of 11,402 credit memos ($1.9M gross / $0.4M net) processed through the returns queue without approval.

Root cause analysis

August workflow change removed the approval routing rule for memos created from the returns queue.

Review notes

RN-508Responded
Dev (Senior Auditor)Tessa (Staff Auditor) · 1 day

Document why the returns queue population was not separately stratified before sampling.

R2C-014 Testing
RN-506Open
Juno (Independent QA)Morgan (Audit Manager) · 4 hrs

Confirm human approval of the deficiency severity conclusion is captured before finalization.

R2C-014 Testing
RN-503Cleared
Dev (Senior Auditor)Rowan (Senior Auditor) · 3 days

Evidence of completeness for the privileged role listing needs a parameters screenshot.

ITGC-004 Access Review
RN-499Responded
Juno (Independent QA)Tessa (Staff Auditor) · 2 days

Reference the independent re-performance of report logic in the conclusion.

IPE-005 Aged AR
RN-495Open
Morgan (Audit Manager)Kai (Staff Auditor) · 6 hrs

Extend procedures to the 14 potential duplicate vendor pairs identified by analytics.

P2P-008 Vendor Master

Testing progress by process

Order to Cash34/38
89%
Procure to Pay22/31
71%
Financial Close21/27
78%
Inventory9/24
38%
ITGC19/25
76%
Entity level8/8
100%

All open exceptions

ExceptionControlDescriptionRoot causePopulation impactSeverityStatus
EX-119R2C-014Credit memo of $310,900 posted without required secondary approval.August workflow change removed the approval routing rule for memos created from the returns queue.7 of 11,402 credit memos ($1.9M gross / $0.4M net) processed through the returns queue without approval.Under evaluation
Awaiting human judgment
Tessa
EX-117ITGC-017Three terminated users retained access for 4, 9 and 11 days after termination.HR termination feed excludes contractor terminations processed outside Workday.11 of 214 terminations in FY26 exceeded the 3-day standard.Significant deficiency
Concluded
Rowan
EX-114P2P-008Two vendors activated without documented duplicate check.Duplicate check performed but not retained; procedure does not require evidence.Full-population analytic identified 14 potential duplicate vendor pairs.Control deficiency
Under AI investigation
Kai