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SOX compliance fuels software boom

SOX compliance fuels software boom

by Rick Turoczy on April 19, 2006

Overreact. That’s the American way of doing things – alas. This is even more the case when the US Congress gets involved. This is why, after the various corporate scandals such as the Enron scandal, in 2002 the US Congress passed an insanely complicated bill called the Sarbanes-Oxley act (SOX for short). SOX includes a notorious Section 404 that requires management, under pain of criminal charges, to ‘establish and maintain adequate internal controls for financial reporting’. Some estimates are that the average large company is spending 7.8 million dollars and 70,000 man hours trying to comply!

Why should you care?

Well, first off, as a result of Sarbanes-Oxley a six billion dollar industry, roughly two billion dollars of which is being spent on software, has been created almost overnight. (Another 2 billion or so is spent on consultants.)

SOX compliance fuels software boom

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