Wednesday, November 24, 2004

Hidden gold in corporate cleanup

Sarbanes-Oxley may strike dread in the hearts of some IT executives, but not Tracy Austin. Austin, the chief information officer with casino operator Mandalay Resort Group, said the financial reporting regulations act resulted in a 30 percent increase in her information technology budget this year and battle-tested her fairly young IT staff.

"I was able to beef up our test and development system budget, as well as our firewall and intrusion detection system budget," Austin said. "Sarbanes-Oxley opened up the awareness of our (chief) executives and prompted questions about...our business risks. So instead of talking about technology, we were talking about what are our business risks and the technology to address them."

Compliance technology has gone from the wish lists of bean-counters to the important to-do lists of key executives and board members. That's because the regulations laid down in the Sarbanes-Oxley Act and other laws hold executives' feet to the fire, making them responsible for signing off on the accuracy of their financial statements. Last week, a key section of Sarbanes-Oxley kicked in, turning up the heat.

Hidden gold in corporate cleanup

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