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Changing The DNA Of IT

As organizations work toward compliance with the immediate deadlines of the Sarbanes-Oxley Act of 2002 and prepare to meet other requirements within the act, they are discovering the dollar cost of compliance.
Apr 19, 2005

ITSM Watch Staff

Organizations need to spend wisely on tools that will meet the basic tenets of Sarbanes-Oxley -- including improved transparency and accountability in business processes and corporate accounting -- while providing the foundation for future compliance. IT service management -- a fundamental tool set for weaving transparency, control and risk mitigation into the fabric of IT -- can help organizations achieve regulatory compliance while promoting IT governance and improved business operations.

Key Components of the Sarbanes-Oxley Act
Sarbanes-Oxley requirements for IT departments are contained in two sections and referenced in a third. Section 302 requires corporate executives to certify that their companies have designed and implemented adequate controls to ensure that financial reports are reliable and compiled according to generally accepted accounting principles. Section 404 requires that the Section 302-controlled processes result in certifiable financial reports. IT managers must take direct responsibility for the integrity of the IT role in the financial reporting process.

The real-time disclosure provision of Section 409, which requires immediate public disclosure of material changes, places further burdens upon the IT organization.

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