June 29, 2005
Good Internal Controls Makes Business Sense
As much as SOX has become one of the most hated acronyms in business these days, those who have embraced it, have seen benefits. This is probably due to the fact that twenty years ago, internal controls were seen as positive and effective.
In fact good internal controls are beneficial. This work is something companies should do for their own benefit not just to meet regulations. No one can say that fraud is good. Good internal controls prevent fraud. Just because the regulations have been thus far poorly implemented is not a reason to roll it all back. Fraud has happened in many companies and restatements of financials are rampant. So the regulations are working.
An excerpt from an article on this topic:
"The Heart of Sarbanes-Oxley As A Catalyst For Continuous Financial Improvement
By Sanjay Srivastava
Why what’s good for SOX compliance is good also for revenues and receivables management An increasing number of companies are viewing Sarbanes-Oxley (SOX) compliance not as just a regulatory mandate but as an opportunity for continuous business process improvement. This has a lot to do with SOX compliance itself being a perpetual process and not a one-time event. The fact is, the best practices and technologies that can help ensure sustainable SOX compliance are also ones that have been proven to drive more predictable revenue, minimize Days Sales Outstanding (DSO), reduce operational and administrative costs, and even improve a company’s competitiveness—quarter after quarter, year after year"
To see how your organization can cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm)
In fact good internal controls are beneficial. This work is something companies should do for their own benefit not just to meet regulations. No one can say that fraud is good. Good internal controls prevent fraud. Just because the regulations have been thus far poorly implemented is not a reason to roll it all back. Fraud has happened in many companies and restatements of financials are rampant. So the regulations are working.
An excerpt from an article on this topic:
"The Heart of Sarbanes-Oxley As A Catalyst For Continuous Financial Improvement
By Sanjay Srivastava
Why what’s good for SOX compliance is good also for revenues and receivables management An increasing number of companies are viewing Sarbanes-Oxley (SOX) compliance not as just a regulatory mandate but as an opportunity for continuous business process improvement. This has a lot to do with SOX compliance itself being a perpetual process and not a one-time event. The fact is, the best practices and technologies that can help ensure sustainable SOX compliance are also ones that have been proven to drive more predictable revenue, minimize Days Sales Outstanding (DSO), reduce operational and administrative costs, and even improve a company’s competitiveness—quarter after quarter, year after year"
To see how your organization can cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm)
