Implications Of Sarbanes Oxley Information Technology
Sarbanes Oxley information technology has wider implication in implementing auditing controls by monitoring financial transactions that are done through the means of Information technology.
The Sarbanes Oxley act of 2002 or Public Company Accounting Reform and Investor Protection Act of 2002 monitors the internal auditors control of accounts and transactions that are conducted by various businesses. Due to the widening corporate corruption scandals the Sarbanes Oxley act was introduced to control these scandals in the corporate world which monitored every audit transaction made by investors and businessmen.
Implications of Sarbanes Oxley on information technology
The purpose of the Sarbanes Oxley act is to identify deficiencies within the IT sector with regards to the management of audits. Section 404 specifies the monitoring of the IT sector in terms of audit controls. Some of the features regarding this act include- - Statement of reports Internal control of audits has to be regulated so as to get an insight into the financial management. Adequate steps would be taken so as to safeguard financial irregularities which may be done through the irregularities of Information technology. - IT documentation management Internal control of audits through IT documentation has to be controlled so as to ensure transparent management of financial management with the business. IT documentations have to be in place before auditors examine them. - COBIT and COSO frameworks Control Objectives for Information and Related Technology (COBIT) and Committee of Sponsoring Organizations of the Treadway Commission COSO are two frameworks that have been implemented so as to provide regulation of internal audit controls. However the COBIT framework has been regarded as one of the best frameworks that allow a through check not only of official documents but IT documents regarding financial transactions. Depending upon the business IT record businesses can manage the audit records which will enable them to assess the audit records in various formats. Sarbanes Oxley information technology has enabled auditors to get a thorough examination of the IT documentations that businesses incur while organising reports on financial transactions. However marking the frameworks of examining businesses financial record has been set by the frameworks of COBIT which proves to be an effective way of examining the internal audit records of the company. With Sarbanes Oxley information technology financial irregularities that are conducted before the publication of records can be examined clearly. Under section 404 Sarbanes Oxley information technology is specified in terms of examining the internal records of businesses before they are examined by the auditors. Before the establishment of Sarbanes Oxley act in 2002 various scandals in the corporate world made it crucial to maintaining a track record of all the internal audit controls. This included a thorough examination of the businesses financial transactions so as to implement a standardized examination of all the internal records. It is to be brought to an assessment that all financial documents had to be examined regardless whether they were IT documents or financial documents that enabled businesses to report false documentations. With the examination of IT records businesses are prevented from all financial frauds under Sarbanes Oxley.
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