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Contrak SOX Compliance
Pain points of SOX Compliance
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Is the expense and pain of SOX compliance draining resources that you can little afford to lose? According to Forbes.com, in a survey of 217 public companies, it was estimated that SOX compliance required an additional 26,000 man-hours and approximately $4.3 million dollars and that was just to comply with Section 404. That breaks down to about $91,000 per company.

While providing better controls and more stringent security so companies will avoid Enron-like fiascos, the Sarbanes Oxley Act is becoming one of the most dreaded words in the corporate world today. One of the major reasons for this is because there are truly no guidelines on how to manage compliance and how much of your corporate practices should actually be monitored. In 2004, Microsoft Corporation reported a total of 7500 controls to track in their SOX Compliance plan. They have since reduced that to 5200 for 2005 and are targeting 4000 for 2006.

This is but one example of the huge burden being placed on companies to provide some nebulous amount of information to ensure you comply with government regulations. The crowning blow is that you have to pay external auditors to perform the SOX audit and their take is most assuredly, ‘the more the merrier.’ Who can blame them when they are getting paid by the hour to audit everything but the kitchen sink without having to explain why.



So, while the projected outlook of the Sarbanes Oxley act looks like it will provide exceptional controls and better security to prevent embezzlement, misappropriation of funds and all those other white-collar crimes that used to be swept under the rug, it is also causing incredible pain, loss of productivity, loss of monies and much more for all public companies.

 


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