Friday, April 22, 2011

Tyco Electronic

How to Comply With Sarbanes Oxley and Protect the Interests of Your Employees, Vendors and Investors

Executive Summary By T Rhodes

Sarbanes-Oxley, otherwise known as SOX, regulates financial accountability and information accessibility. It enhances standards for both public companies and public accounting firms. The Sarbanes-Oxley Act is designed to protect the interests of employees, vendors and investors. Why IT Controls is So Important When Complying with Sarbanes Oxley



Under the Act, ultimate responsibility for data management, security, reliability, integrity and accuracy reside collectively with the Chief Information Officer (CIO), the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO). Pursuant to Sarbanes-Oxley, the CIO is accountable for the systems that control and report financial data, while the CEO and CFO are accountable for actual financial reporting.



2. Control



3.Accountability.



All corporations should take the following steps toward Sarbanes-Oxley compliance:



    * Implement a solid technological structure promoting effective and efficient compliance processes

    * Expand information flow and collaboration

    * Document accurate and timely financial reconciliations using Excel, Access or other customized technology solutions

    * Document IT systems' usage rules and develop a financial information audit trail

    * Implement risk-rating processes for all financial accounts

    * Understand and map financial reporting process, IT systems and internal controls

    * Identify financial reporting, IT and internal control risks

    * Document and test controls

    * Perform and update controls assessments corresponding with any financial reporting process changes



Check my other post : Electronic Circuit




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