Create a 4 page essay paper that discusses SARBANES-OXLEY ACT.102).Such information is usually to be found in several locations and on dissimilar systems. This makes it imperative to have in place a m
Create a 4 page essay paper that discusses SARBANES-OXLEY ACT.
Such information is usually to be found in several locations and on dissimilar systems. This makes it imperative to have in place a mechanism that facilitates the retrieval of data from multiple applications. otherwise, complete compliance with the provisions of the Sarbanes – Oxley Act cannot be realized (Stephens, 2005, p. 102).
There is considerable difficulty and intricacy involved in complying with the Sarbanes – Oxley Act. Data has to be shown to be authentic, and this obliges auditors and company executives to confirm the integrity of the financial data of their enterprise that influences the financial position of their company (Stephens, 2005, p. 102). Complying with the provisions of Sarbanes – Oxley Act proved to be much more burdensome for companies.
This includes among other things, the capacity to validate the processing and transmission of data at all times, regardless of the specific phase of the life cycle that the data may be subjected to auditing or investigation. A major consequence of these requirements is that the Information Technology division of a company has to ensure that authentication capacities are inherent in the storage repositories and software applications (Stephens, 2005, p. 102).
Furthermore, a major issue related to compliance with the Sarbanes – Oxley Act is that related to the amount of time involved in accessing data. For instance, there has to a rapid disclosure with regard to a business event that has substantial influence on the revenues of the company (Stephens, 2005, p. 102). Thus, compliance with this act necessitates the capacity to authenticate, search and access the relevant records and data in near real time.
The Sarbanes – Oxley Act 2002 was enacted by Congress with the express intention of enhancing the reliability and accuracy of corporate disclosures. This initiative was