Friday, December 05, 2003

How Big, Bad, and Ugly is SOX Compliance, Really?
Either Sarbanes-Oxley is not as costly and complicated to implement as the Cassandras were saying, or a lot of companies are simply turning a blind eye to the realities of the requirements.

Many CPA firms and back-office services outfits appear to be very busy getting client companies up to speed. But now comes a study from Meta Group Inc. that finds 57 percent of IT vendors are failing to meet their SOX-inspired sales targets. In fact, they "failed to see any substantial sales movement resulting from companies' need to become SOX compliant," according to WebCPA. Still, 97 percent view ongoing SOX compliance as a future business driver. Meta suggests that companies are getting their own houses in order before seeking outside help. Internal analysis and documentation efforts account for an average of 75 percent of total SOX compliance investments, Meta said.