Sarbanes-Oxley Act
Updated: August 25, 2005
How Your Technology Solutions Can Help Support Compliance
Passed in the United States in July 2002, the Sarbanes-Oxley Act holds companies to a new level of accountability. For publicly-held companies in the United States and companies that have securities filed in the United States, it means implementing processes, systems, and reporting that demonstrate corporate governance best practices to investors. And companies that plan to go public should also plan to be in compliance before filing.
Implementing Sarbanes-Oxley compliance will be costly for many businesses. It will place more demands on resources, take time to implement, and require additional funding if external expertise must be brought in.
Microsoft, with the help of its partner ecosystem and accounting professionals, provides a robust, familiar, and dependable set of tools that can help your organization create an efficient, flexible, and cost-effective approach to meeting short- and long-term Sarbanes-Oxley requirements.
Microsoft solutions and applications can extend your IT investments with the strength, vision, and commitment required to meet your long-term compliance needs. Business processes managed using Microsoft Dynamics applications can help provide your compliance experts with a solid foundation to meet Sarbanes-Oxley demands, especially with sections 302, 404, and 409 of the Act. In addition, application specialists from your business solutions supplier—and other Microsoft partners—can help identify processes or process steps required for compliance.
Challenges for Companies Affected by the Sarbanes-Oxley Act
The Sarbanes-Oxley Act challenges an organization's executives to:
| • | Meet requirements of Sarbanes-Oxley sections 302 and 404. |
| • | Demonstrate financial transparency and good corporate governance to investors. |
| • | Implement a system for managing compliance initiatives. |
| • | Maintain focus on core organizational missions. |
Plan for Short- and Long-Term Compliance
1. | Determine if your company is affected by the Act (follow U.S. Securities and Exchange Commission guidelines). |
2. | Develop and execute your plan to bring your business into compliance by the first deadline (work with consultants, experts, your accountant, and your business solution provider). |
3. | Review your current IT systems, processes, and financial applications and determine their effectiveness for long-term compliance. |
How Using Microsoft Dynamics Applications Can Help
Your solution can give you the visibility over financial processes and controls you need to help you comply with government regulations and have better oversight of corporate activities.
For executive and operational managers, especially managers in IT and finance, a white paper is now available to clarify the scope and key requirements of the Sarbanes-Oxley Act from a business applications perspective. The white paper offers basic background on how the Act affects companies and outlines how Microsoft Dynamics applications can help you:
| • | Ensure data integrity, security, and transparency. |
| • | Budget, plan, and report variances. |
| • | Recognize and communicate material events. |
Even Better Together: How Microsoft Office Can Help
Microsoft Dynamics applications are developed to work inherently with Microsoft Office software. Together they can help you better support compliance processes across your organization—from complex business management processes to daily productivity tasks. A Sarbanes-Oxley solution built on the Microsoft Office System can help organizations facilitate compliance initiatives related to sections 302 and 404 of the Sarbanes-Oxley Act and can provide more visibility into your company's financial processes and internal controls. Experienced Microsoft partners are available to implement complete solutions, combining software components, templates, and architectural guidance.
Get Details: Office Solution Accelerator for Sarbanes-Oxley
