Paper Topic:

Sarbanes-Oxley

The major things that IT managers will have to do differently when Sarbanes-Oxley becomes fully implemented and effective

INTRODUCTION

The Sabarnes -Oxley Act was the response to the Enron and Arthur Andersen scandal . The company presented glaringly financial statements that did not show the true income in its income statement and balance sheets . There many other companies that had the same fate as the Enron debacle . This act gives the minimum requirements that a company should implement in to present a more accurate ( as compared to the previously FAIR ) balance sheet

and income statement . The following paragraphs describes the nuances of the responsibility and the role of the information technology managers as they go hand in hand with the other managers of the company in the compliance of the minimum requirements of the Sabarnes -Oxley Act

BODY

The Information Technology managers should differently do major things when the Sarbanes - Oxley Act becomes fully implements and effective First , the Information Technology managers should improve or strengthen the internal security within the company . Second , The information Technology managers should improve the maintenance activities . So that the software programs will not be easily corrupted or infected with virus . Third , the software should replace its best estimates policy in recording of daily business transactions to a better accuracy in the gathering , collecting and interpretation of data

First , the information technology managers should improve or strengthen the internal security within the company . The people who use the computers should have passwords . Also , only authorized personnel are allowed in the buildings where sensitive information is kept

Second , The information Technology managers should improve the maintenance activities . And , the software programs will not be easily corrupted or infected with virus

Anti -virus software include Norton Anti- virus and others . Also firewalls should be set up to block unwanted websites , advertisements and questionable emails

Third , the information technology department should cooperate with the accounting and other departments as the organization replaces its best estimates policy in recording of daily business transactions to more accurate in the gathering , collecting and interpretation of data Russ Banham (2005 ) stated that it the trend is no longer to present financial statements such as the balance sheet and income statements Now , there strong pressures to produce financials statements that are more accurate with the help of the computer software with the advent of the Sarbanes- Oxley act . For , Sarbanes -Oxley

does not stipulates the minimum requirements that certified public accountants should assume in relation to the accuracy of all assets that will serve as guidelines on

the imposition of punishments on Chief Executive Officers and Chief financial officers

For , the Sarbanes -Oxley act has placed greater emphasis on the economic value of businesses intangible assets of all kinds . Thus , accuracy through the help of information technology has become a business priority

Susan Switzer stated that the internal audit reports should follow the steps outlined in the Sarbanes Oxley act . The information technology managers should implement necessary steps to hasten the implementation of...

6 pages

39.5 KB

Free sing-up