SOX has started
to make 3000 shops toe the line
Act (SOX) is already having an impact on HP 3000 customers
timelines for making transition choices. A July 15, 2005 deadline is
approaching for documenting business processes to satisfy US
regulators. HP 3000 customers are reporting that SOX is dominating
their IT spending this year at companies who are public or use public
financing. An AMR Research report says Sarbanes-Oxley is grabbing 42
percent of compliance-related IT spending, and more than a third of
companies plan to increase Sarbanes- Oxley spending this year. A
recent survey showed companies will spend an average of $3 million
and 30,000 hours dealing with section 404 of the Act, which revolves
around internal controls. And the US government has not granted a
single extension, not even for smaller public companies.
The March 11
regional meeting of the CAMUS manufacturing user group included a
briefing on SOX; customers posting on the HP 3000 newsgroups have
been asking for help on how to make the IMAGE audit trails clear
enough to satisfy regulators. Terri Glendon Lanza, the CAMUS Midwest
president who contributes to HP 3000 support company the Support
Group inc.s newsletter, told CAMUS members that SOX is not just
ISO for accountants. Not true, I learned at a presentation at
the Sears Tower on February 24, Lanza wrote to CAMUS members.
Making sure that a companys financial books show an exact
valuation actually reaches throughout the organization.
efforts centered on accounting reporting, but now general business
processes are also reviewed for any potential financial risk. This
review lends itself well to making cases for implementing best
practices in various areas such as purchasing, inventory management,
and supply chain functions. Besides those benefits, officers of the
organization will avoid the orange suit syndrome (jail
time). For more details contact the Support Group inc. or Lanza at www.askterri.com.