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Sarbanes-Oxley News & Developments
Sarbanes-Oxley Compliance - Not Over Yet for Publicly Traded Companies If you work for a public company most have implemented changes for round one, now companies need to get ready for round two.
> > Unless you work for a publicly traded company, you do not need to worry about SOA compliance. The Sarbanes-Oxley Act (SOA) followed the Enron and Global Crossing fiacos to increase accountability of publicly traded companies.
SOA compliance is a process, not an event according to AMR Research. AMR claims that the SOA compliance has the potential to be bigger than Y2K in how it affects companies of every size. Companies may have met initial Sarbanes-Oxley compliance using well defined processes and procedures, but compliance with upcoming Sections 404 (certification of financial reporting processes and controls) and 409 (real time reporting of material events) may not be that easy.
Gartner Research observed SOA and the IT department is the importance of legal discovery of electronic documents. Companies that do not keep proper records will pay heavy legal costs and possible financial judgements. Gartner predicts that record managment technology will increase with enterprises either adapting existing document management systems or buying standard records management systems. SOA will also increase business intelligence and corporate performance management.
Companies must remain alert and be prepared to respond to SOA because the SEC will continue to issue pronouncements on what will be required and when rules will take effect.
Source: TechRepublic article
Published:2003-06-17
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