Goodbye, SOX?

May 18, 2009
44 Views

Keep your eye on this one: the US Supreme Court has just decided to review the constitutionality of the Sarbanes-Oxley Act of 2002.

According to today’s news, the Supremes said they would consider a legal challenge to the law, on the basis that it “violates the constitutionally mandated separation of powers.” (Free Enterprise Fund v. Public Company Accounting Oversight Board, 08-861)

The law, which directly affects public companies and indirectly affects the companies that deal with public companies, requires greater transparency and accountability in financial reporting. This is has been both a major headache and opportunity for information technology departments. As a result, the need to better trace data has been a business driver of many data management and service orientation efforts in recent years.

Some analysts say SOX has scared off companies from going public.

Even if the law were struck down and sent back to Congress for heavy modification, it has had an impact in shaping the goals of information technology going forward. Enhancing the visibility and accountability of data and applications delivering the data are worthy efforts that often make business sense. Such efforts..


Keep your eye on this one: the US Supreme Court has just decided to review the constitutionality of the Sarbanes-Oxley Act of 2002.

According to today’s news, the Supremes said they would consider a legal challenge to the law, on the basis that it “violates the constitutionally mandated separation of powers.” (Free Enterprise Fund v. Public Company Accounting Oversight Board, 08-861)

The law, which directly affects public companies and indirectly affects the companies that deal with public companies, requires greater transparency and accountability in financial reporting. This is has been both a major headache and opportunity for information technology departments. As a result, the need to better trace data has been a business driver of many data management and service orientation efforts in recent years.

Some analysts say SOX has scared off companies from going public.

Even if the law were struck down and sent back to Congress for heavy modification, it has had an impact in shaping the goals of information technology going forward. Enhancing the visibility and accountability of data and applications delivering the data are worthy efforts that often make business sense. Such efforts should be continued.

A few years back, I wrote a special section for Teradata Magazine that explored the ins and outs of SOX compliance for companies.  (See Cover Story – “Uncovering Opportunity.”) I spoke with thought leaders such as Claudia Imhoff and Lee Dittmar, who encouraged businesses to look beyond the legalities to seize the business opportunities:

“Looking beyond sustainable compliance offers companies the opportunity to do new things with their data—to analyze and identify trends, improve customer service and eliminate redundancies in their supply chains. The effort is a continuous journey that, in the long run, will help companies become more efficient and informed in their processes.

“This is a journey that has to happen,” says Dittmar. “Compliance must be sustainable, and that takes work. The program must be effective and efficient. There are significant improvement opportunities, and it will take hard work to achieve the benefits. But pursued properly, this exercise can be translated from a compliance exercise into a journey that improves enterprise governance, enhances business performance and creates shareholder value.”

That’s a journey well worth taking, even without the government pushing the issue.



Link to original post

You may be interested

How SAP Hana is Driving Big Data Startups
Big Data
298 shares2,906 views
Big Data
298 shares2,906 views

How SAP Hana is Driving Big Data Startups

Ryan Kh - July 20, 2017

The first version of SAP Hana was released in 2010, before Hadoop and other big data extraction tools were introduced.…

Data Erasing Software vs Physical Destruction: Sustainable Way of Data Deletion
Data Management
41 views
Data Management
41 views

Data Erasing Software vs Physical Destruction: Sustainable Way of Data Deletion

Manish Bhickta - July 20, 2017

Physical Data destruction techniques are efficient enough to destroy data, but they can never be considered eco-friendly. On the other…

10 Simple Rules for Creating a Good Data Management Plan
Data Management
69 shares622 views
Data Management
69 shares622 views

10 Simple Rules for Creating a Good Data Management Plan

GloriaKopp - July 20, 2017

Part of business planning is arranging how data will be used in the development of a project. This is why…