SOX Compliance: Time Running Out on SEC Survey
The SEC Advisory Committee on Smaller Public Companies is asking executives to comment on the impact of the Sarbanes-Oxley Act by August 31, 2005.
Executives from Small and Medium-sized Enterprises (SMEs) should watch very carefully for the results of this survey. Currently, the potential costs associated with SOX compliance can negatively impact IPO or M&A plans. Strategic investors are very wary of acquiring interests in companies that have not invested in SOX programs.
The SEC could authorize the development of Semantic web-based process control strategies for compliance management. These strategies would greatly reduce the storage costs associated with SOX compliance. The current brute-force regime relies on storing enormous amounts of data and after-the-fact inspections to determine compliance. The business world learned from Dr. W. Edward Deming that process quality has to be engineered. Hopefully, the SEC will learn the same lesson.
Executives from Small and Medium-sized Enterprises (SMEs) should watch very carefully for the results of this survey. Currently, the potential costs associated with SOX compliance can negatively impact IPO or M&A plans. Strategic investors are very wary of acquiring interests in companies that have not invested in SOX programs.
The SEC could authorize the development of Semantic web-based process control strategies for compliance management. These strategies would greatly reduce the storage costs associated with SOX compliance. The current brute-force regime relies on storing enormous amounts of data and after-the-fact inspections to determine compliance. The business world learned from Dr. W. Edward Deming that process quality has to be engineered. Hopefully, the SEC will learn the same lesson.
posted by The IT Investment Architect at 8/23/2005 06:50:00 PM
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