Security & Identity: A Winning Approach to Sarbanes- Oxley …
auditors understand what to focus on in relation to ensuring compliance while minimizing Maintaining an audit trail that demonstrates compliance with internal business policies …Read more

SOX
By Paul Feuerberg, CPA, Audit Partner. The Securities and Exchange. Commission recently burden of Sarbanes- Oxley (SOX) compliance for small. businesses. The …Read more

Sarbanes-Oxley and Service Desk: An Approach to Control …
not require any specific auditing method beyond their. broad guidelines, each auditing firm has their own. method based on their choice of frameworks. COBIT is. frequently IT department seeking SOX compliance can be reliably. guided by COBIT, not only in …Read more

Validate and Enforce Change Process for SOX Compliance …
SOX Compliance. Sarbanes-Oxley and its Impact on IT “Sarbanes-Oxley Act (SOX) Section 404″ requires companies to. publish It also reduces the cost of the audit itself, as the enforcement. mechanism becomes an “umbrella control” …Read more

Compliance Mapping
To accelerate SOX compliance as well as safeguard confidential information, companies need automated solutions In addition, they need a unified approach that provides auditing, …Read more

Sox Review;
What is it costing companies to demonstrate SOX compliance? Curious about the potential cost of auditing and certifying compliance? I was lead to this article on the Internet; A.R.C. Morgan Report – what companies are spending on Section 404 …Read more

The Future Of Sox

Ah, Sarbanes-Oxley.  It’s that albatross that has hung around so many business owners’ necks since it was unfurled in 2002.  No wonder one of the top questions I’m asked is, “Scott… what do you think the future of SOX will be?”

Since I’m not gifted with the powers of 100% accurate prognostication, I can only speculate as to where the Sarbanes-Oxley Act will head in the coming years.  However, based on the current economic climate, the intense debate surrounding the regulations and the media it’s been getting, I’ve put together a few predictions:

1.  Small Businesses Will Continue to “Rage against the Machine”

For small businesses that are publicly owned, Sarbanes-Oxley has brought larger financial ramifications than it has for monolithic corporations.  Thanks to the fixed costs associated with SOX compliance, those smaller businesses are forced to spend a larger percentage of their revenues on SOX-related measures. 

Of course, the SEC has granted several SOX extensions to small public companies, namely those dealing with Section 404.  The next is scheduled for June 15, 2010.  However, no one is jumping for joy at the news.  This constant pushing back of SOX deadlines is akin to being on death row and receiving a stay of execution.  Sure, you’re glad that you’re not going to the electric chair right away, but you’re still on death row. 

Fortunately, unlike a prisoner, small businesses are free to fight back politically and legally.  I think you’re going to see plenty of that as the next Sarbanes-Oxley deadline for small businesses closes in.

2.  SOX Will Undergo Revisions

The Enron scandal that created Sarbanes-Oxley is coming up on its 10-year anniversary, and the memory of the problems that precipitated SOX are waning in the minds of the up-and-coming generation of entrepreneurs and execs.  Consequently, I think you’re going to see some minor – and perhaps even major – revisions when it comes to the way that Sarbanes-Oxley will shape the future of the business world.

Currently, many politicians and business leaders have set their sights on reshaping SOX.  Truly, not a day goes by that financial bloggers around the world aren’t discussing Sarbanes-Oxley.  Some find it praiseworthy, others find it loathsome.  But all find it highly interesting and relevant, and that keeps SOX in the public’s eyes and minds. 

Though this may sound like great news, it’s important to be realistic… so I have to say that…

3.  SOX Is Probably Not Going to Significantly Change for Many Years

Given the fact that laws are tough to change, the chances of SOX going away tomorrow are nil.  That means that all businesses – especially public small businesses – need to be prepared. 

Last year we notified small public clients of procedures that should be taken.  Most said “Let’s wait and see before incurring unnecessary costs given the economic climate.”  The SOX audits loom over these businesses again this year and most are expecting another reprieve.  Again we will reiterate last year’s notification of procedures that should be taken, and again we will probably wait on the enforcement ruling. 

So will my Sarbanes-Oxley forecasts come true?  I don’t know.  But I do know that it’s absolutely critical for any publicly-owned business (or business that’s considering going IPO) to stay up to speed on the direction of SOX today and tomorrow.