Tuesday, February 05, 2008

Commentary: Postal Service readies for Sarbanes-Oxley Act

The 2006 Postal Accountability and Enhancement Act includes a mandate that the U.S. Postal Service comply with Securities and Exchange Commission rules that implement the Sarbanes-Oxley Act (SOX) by fiscal 2010. The act requires corporations to report on the effectiveness of their internal controls, with the goal being to ensure the accuracy of financial reporting.

The Postal Service is the first federal agency mandated to comply with the act and thus faces unique challenges. With those challenges come exciting opportunities. Sarbanes-Oxley Act compliance includes both business and information technology components, each with its own requirements. Given the reliance on information technology to move the mail and report financial transactions, the Postal Service IT infrastructure and the management thereof play a significant role in ensuring the integrity and reliability of the organization’s financial reporting and in supporting Sarbanes-Oxley Act compliance.

When passage of the Postal Act was announced, the IT organization immediately went into action, proactively using the Sarbanes-Oxley Act as a trigger to advance improvements throughout IT. The newly established IT SOX team began developing key controls and related tools in preparation for required documentation, assessment and reporting. Coordination with the finance organization was also conducted to perform comprehensive risk assessments and to ensure project alignment.

Commentary: Postal Service readies for Sarbanes-Oxley Act

Labels: 2006 Postal Accountability and Enhancement Act, 2010, sarbanes oxley, sox

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