HOW TAX TECHNOLOGY WILL AFFECT SARBANES-OXLEY COMPLIANCE

The rules governing executives at publicly traded companies have changed dramatically, and board members and audit committees are going to be under increased scrutiny. The new rules are designed to make it tougher for executives to commit fraud by requiring them to use extensive financial reporting...

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Bibliographic Details
Published in:Internal Auditing 2003-11, Vol.18 (6), p.31
Main Authors: Leifer, David, Viglione, John
Format: Article
Language:English
Subjects:
Accountability
Audit committees
Boards of directors
Compliance
Corporate tax planning
Corporate taxes
Documentation
Enterprise resource planning
Financial reporting
Financial statements
Fraud
Human error
Internal auditing
Public Company Accounting Reform & Investor Protection Act 2002-US
Reporting requirements
Scandals
Software packages
Spreadsheets
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Summary:The rules governing executives at publicly traded companies have changed dramatically, and board members and audit committees are going to be under increased scrutiny. The new rules are designed to make it tougher for executives to commit fraud by requiring them to use extensive financial reporting controls. Section 404, the most critical part of the Sarbanes-Oxley Act, requires business process audits and documentation to support internal controls certification. Companies will need to develop the means to continually audit themselves internally, and technology will be the key to doing so. Currently, there are a limited number of technology companies that have developed systems to help companies meet certain aspects of Sarbanes-Oxley compliance. By implementing an automated tax technology solution, businesses can create a reliable audit trail that can hold up under the scrutiny of an audit. It should be a documented, defensible system that can calculate and store data as well as report it to a governmental entity.
ISSN:0897-0378