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Formtek Blog: Sarbanes-Oxley Compliance and ECM

Formtek Blog: Sarbanes-Oxley Compliance and ECM

by Rick Turoczy on July 31, 2006

t’s been only four years since the Sarbanes-Oxley Act (SOX) was passed. But in many ways this one piece of legislation has already had a profound impact on the entire business community. The goal of SOX is to achieve greater transparency and accountability in financial reporting, and in doing so, provide a way to more closely scrutinize public coporations from the outside. Stiff fines, penalties and the threat of litigation have been strong motivators to get companies to comply. But many or maybe even most companies still have a long way to go.

Part of the reluctance or difficulty with SOX is just coming to grips with what it all means. SOX does not clearly spell out in black and white the steps for achieving compliance. It was intended to provide overall guidance, but it is very broad and lengthy, consisting of 11 parts and 66 sections. The language in SOX was written in very general terms to spell out requirements that apply to all public companies, and the interpretation and the methods by which SOX compliance are achieved is still evolving.

Formtek Blog: Sarbanes-Oxley Compliance and ECM

{ 2 comments… read them below or add one }

Brian Moran September 15, 2006 at 8:04 am

In talking about control frameworks like COBIT or COSO, people often ignore or pay less attention to the monitoring component of their controls. Companies are now integrating continuous monitoring as both a control and an automated control test. For more information check out this Forrester webcast:

Webcast with Forrester Research: Controls Automation & Continuous Monitoring

Date: Tuesday, Sept. 26

Time: 1 p.m. EDT/10 a.m. PDT

Duration: 45 minutes ngoing

Sarbanes-Oxley compliance demands controls optimization and continuous monitoring. In the first years of internal control audits, companies labored to satisfy their auditors with manual controls that were costly to implement and then required intensive testing. Forrester Research analyst Paul Hamerman will lead a 45-minute discussion on how companies can take their SOX compliance programs to the next level with controls automation and continuous monitoring. Specifically, Paul will discuss:

* Risk-based controls (and how to implement them)

* Automating compliance processes

* The role of continuous monitoring as a control and control testing

* Business benefits from compliance

Toby Lucich September 15, 2006 at 8:32 am

I view Monitoring and Communication as the two elements of the COSO model most likely to drive value over the longer term, predicated on successful baseline work in the fundamentals required for 404 compliance.

As executives discussion increasingly turns to risk exposures impacting the delivery of business objectives, decision making shifts to a new paradigm. Any efforts that improves management awareness and discussion of risk management practices within a business go a long way toward safeguarding shareholder value.


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