Enterprise System Spectator blog: ERP and enterprise system vendor evaluation, selection, and implementation.

The Enterprise System Spectator

Tuesday, February 01, 2005

Help is on the way: software for SOX compliance

Corporate spending on Sarbanes-Oxley (SOX) so far hasn't been the gold mine that software vendors have been hoping for. Compliance has been largely a manual effort, as companies work to document and improve internal controls under SOX Section 404. A recent AMR survey estimates that only 28% of SOX compliance spending has been for technology. The rest is for manpower: internal headcount (42%) and external consulting (29%).

But the ratio of manpower to software may be starting to change. According to an article in CFO Magazine, software vendors have been refining their SOX compliance offerings to automate some of the tasks:

New versions of Sarbox software programs represent big improvements over earlier offerings. Certainly, recent releases from Axentis, Hummingbird, OpenPages, Virsa Systems, and Approva reflect a more realistic understanding of the burdens. Some of the programs compare a company's current controls to compliance best-practices, offering solutions on how to shore up weaknesses and better segregate duties. Others help managers document policies and procedures, creating electronic archives of those policies along the way. Several programs flag internal transactions that look suspicious.
Software is not going to completely automate Section 404 SOX compliance. Compliance will continue to be a huge manual effort. There's no substitute for manager's understanding of the business in assessing, designing, and implementing proper internal controls. But software can help.

Read the entire CFO article for more details.

Update: on a related note, Computerworld has a good article today on how SOX compliance programs are causing a shift in the role of the CIO, putting the IT group at least temporarily more closely associated with the CFO. For CIOs that have been struggling over the years to get out from under the management by the accounting function, it's not necessarily a good trend.

Related posts
Making SOX compliance a meaningful exercise
Sarbanes-Oxley compliance: too often a wasted effort
Sarbanes-Oxley spotlights need for controls in IT
Checklist for Sarbanes-Oxley compliance
Sarbanes-Oxley spotlights need for controls in IT
Cost of compliance with Sarbanes-Oxley isn't mainly in new systems
Is Sarbanes-Oxley the new Y2K?

by Frank Scavo, 2/01/2005 07:14:00 AM | permalink | e-mail this!

Subscribe!

 Reader Comments:

Thanks for the software solutions that you mention...It helps fine tune the selection process for segeration of duties.. I have worked with many of these solutions and they are very deep -- the problem with all thee solutions is they are narrow in their approach

I am a partner at a Big 4 and one of the best solutions in the market is CorporateStream from a company called MetricStream. They provide a lasting and comprehensive solution

Watch out for this company.. Its a success in the making. They are backed by Kleiner Perkins and are going about it the right way....

Rubin ...
 
Post a Comment
 

Links to this post:


 

Powered by Blogger

(c) 2002-2014, Frank Scavo.

Independent analysis of issues and trends in enterprise applications software and the strengths, weaknesses, advantages, and disadvantages of the vendors that provide them.

About the Enterprise System Spectator.

Frank Scavo Send tips, rumors, gossip, and feedback to Frank Scavo at .

I'm interested in hearing about best practices, lessons learned, horror stories, and case studies of success or failure.

Selecting a new enterprise system can be a difficult decision. My consulting firm, Strativa, offers assistance that is independent and unbiased. For information on how we can help your organization make and carry out these decisions, write to me.

For reprint or distribution rights for content published on the Spectator, please contact me.


Go to latest postings

Custom Search

Join over 1,700 subscribers on the Spectator email list!
Max. 1-2 times/month.
Easy one-click to unsubscribe anytime.

Follow me on Twitter
My RSS feed

AddThis Feed Button


Computer Economics
ERP Support Staffing Ratios
Outsourcing Statistics
IT Spending and Staffing Benchmarks
IT Staffing Ratios
IT Management Best Practices
Worldwide Technology Trends
IT Salary Report

Get these headlines on your site, free!


Awards

2013 Best ERP Writer - Winner

Alltop. We're kind of a big deal.
 
Constant Contact 2010 All Star Technobabble Top 100 Analyst Blogs


Blog Roll and Favorite Sites
Strativa: ERP software vendor evaluation, selection, and implementation consultants, California
StreetWolf: Digital creative studio specializing in web, mobile and social applications
Vinnie Mirchandani: The Deal Architect
Si Chen's Open Source Strategies
diginomica
CISO Handbook


Spectator Archives
May 2002
June 2002
July 2002
August 2002
September 2002
October 2002
November 2002
December 2002
January 2003
February 2003
March 2003
April 2003
May 2003
June 2003
July 2003
August 2003
September 2003
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
May 2007
June 2007
July 2007
August 2007
September 2007
October 2007
November 2007
December 2007
January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008
January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
July 2009
August 2009
September 2009
October 2009
November 2009
December 2009
January 2010
February 2010
March 2010
April 2010
June 2010
July 2010
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
July 2011
August 2011
September 2011
October 2011
November 2011
December 2011
January 2012
February 2012
March 2012
April 2012
May 2012
June 2012
July 2012
September 2012
October 2012
December 2012
January 2013
February 2013
March 2013
May 2013
June 2013
July 2013
September 2013
October 2013
December 2013
January 2014
February 2014
March 2014
April 2014
May 2014
June 2014
July 2014
August 2014
Latest postings