Sunday, November 14, 2004

Users brace for SOX deadline

As Monday approaches and with it the deadline for compliance with the Sarbanes-Oxley Act (SOX) of 2002, IT departments are crossing the finish line with lighter wallets, still unsure whether they've got it right or how the first round of audits will turn out.

Beginning next week, companies that have publicly owned shares of more than $75 million and that have fiscal years ending on or after Nov. 15 must comply with internal control reporting and disclosure requirements of Section 404 of SOX. Companies with less than $75 million in public shares have until July 15 to comply.

To support Section 404, companies must ensure that they have the proper documentation, retention and retrieval processes in place for the financial records of their company. They must also ensure that they have a solid audit trail to account for all decisions.

Keeping up with all this has been an expensive endeavor, with companies shelling out millions of dollars for auditing fees, extra man hours and for new software and hardware that help archive and retain records.

Users brace for SOX deadline

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