01 November 2004

Gearing up for Sarbanes-Oxley compliance

The Sarbanes-Oxley Act, officially called Public Company Accounting Reform and Investor Protection Act. I believe this Act has something to do with the Enron Scandal. And involves changes on how financial and corporate reporting is conducted. It provides rules for the retention of document of all types, alteration or deletion are awarded with 10 to 20 years imprisonment and sequestration of ill-gotten gains. Pretty serious piece of legislation.

The SEC requires publicly traded companies with market cap of $75 Million and over must meet major compliance by November 15 and smaller market cap companies have until July 15 of 2005 to comply. Quite a pressure. The implementation of this new and improved record management will fall heavily on I.T. In order to achieve compliance, additional investments in storage devices, specialized software, new types of media, and enhanced records management controls will be necessary. In other words, it sounds crazy to outsource this daunting task halfway across the globe. Chances are, the more astute companies will bring back H1-B I.T. workers instead of offshore outsourcing.

This act will make programmers, sysads and the likes more indispensable in the eye of the management. So how can a Filipino Java Developer gear up for the next big rush since Y2K? First thing, it is unavoidable that specialized software and record management controls will be developed for this purpose and as of now there isn't any that will address the Sarbanes-Oxley directives so as of now the playing field is still "level".

However, there are two competitors that we need to beat in this game; India and defeatism. The latter is just an crab email away to waste us. :)

More on
http://www.s-ox.org


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