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Sarbanes Oxley Digitization and Automation

The Sarbanes-Oxley Act came into force in July 2002 and introduced major changes to the regulation of corporate governance and financial practice. It is named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, and it set a number of non-negotiable deadlines for compliance.

The Sarbanes-Oxley Act is arranged into eleven 'titles'. As far as compliance is concerned, the most important sections within these eleven titles are usually considered to be 302, 401, 404, 409, 802 and 906.

An over-arching public company accounting board was also established by the act, which was introduced amidst a host of publicity.

The Sarbanes-Oxley Act (SOX) of 2002 is considered to be the most significant change to federal securities laws in the United States since the New Deal. It has no reference to the Chicago White Sox professional baseball team. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. Among the major provisions of the act are: criminal and civil penalties for securities violations, auditor independence / certification of internal audit work by external auditors and increased disclosure regarding executive compensation, insider trading and financial statements.

While most Sarbanes compliance reviews are normally gathered using spreadsheets and word documents, T3Consortium has been working with a number of accounting and software firms to develop a scalable, globally accessible firm wide repository of traceable Sarbanes Oxley (SOX) requirements.

Center of Excellence Approach
Integrating Quality Control Concepts can assist Sarbanes Oxley Compliance and Governance. By connecting the Information Technology group with your business office governance groups, the logical step is to integrate the following that links the appropriate groups within your organization:

  • .Workflow Digitization

  • .Information Digitization

  • .Virtual collaborative environments

  • .Automate digital content

  • .Test deep and often

Think for a moment. Most of your governance controls are probably in place. But the process is wide-spread, manually executed, and difficult to use in a collaborative manner. That's where we work with your business and compliance officers to validate your processes, and create the digitization maps and traceability matrices. Once the processes are digitized, our Advanced Modeling will allow the program to expand, while focus turns to creating repeatable automation processes. (see Diagram below).

Whether your an IT Quality Assurance Engineer, or a seasoned CPA, our processes can make your job more reliable, easier to reconcile, and traceable.

T3 Consortium believes that you can combine the Compliance and Governance functions and use Quality Assurance practices to advance your SOX Compliance initiatives.

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Sample Sarbanes Compliance Traceability Window.
No more spreadsheets - complete control.

T3 Consortium tests SOX-Sarbanes Oxley, your software, and your processes.


Here's what Oracle is saying about SOX.

In general terms, a Sarbanes-Oxley compliance plan has three elements:

  • Systems for collecting compliance-related data in consistent form

  • Procedures ensuring that rules are followed and necessary information is collected

  • A single source of information where financial, contractual, and other data resides (or to which it flows)

This three-pronged approach is important, because Sarbanes-Oxley compliance isn't strictly a finance or IT task. Compliance requires broad involvement from many departments. Leadership is important; some experts recommend appointing a chief compliance officer whose responsibility is to coordinate compliance-related activities across departments. Larger firms will also want to identify and train people to serve as local points of contact for compliance-related questions. Employees will need training in addition to new systems and procedures.

Sarbanes Oxley (SOX) Act Background:

One of the most burdensome compliance acts to corporate America has been SOX, known as the Sarbanes-Oxley Act of 2002. Organizations are struggling to identify methods to validate compliance to protect the integrity of the shareholders, customers, and directors.

T3 Consortium understands the complexity of compliance and is working to develop a IT strategy that will verify Sarbanes Oxley compliance, and provide a detailed audit and reporting repository for compliance officers.

Recommended Reading:

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The Real Deal
Sarbanes Oxley Act of 2002
Fresh from the House of Representatives ext provides a practical approach for managers in assessing internal control structure at t
The act is named after its architects, Senator Paul Sarbanes and Representative Michael Oxley. It is also intended to "deter and punish corporate and accounting fraud and corruption, ensure justice for wrongdoers, and protect the interests of workers and shareholders" as stated by President G.W Bush

The Sarbanes-Oxley Act itself is organized into eleven titles. Sections 302, 404, 401, 409, 802 and 906 are the most significant with respect to compliance. Pay particular attention to  Section 404. It seems to draw the most interest. The Act also created a public company accounting board.

Editorial Reviews
Book Info
Text provides a practical approach for managers in assessing internal control structure at the transaction level. Introduces the 'Control Smart' approach, which helps identify and understand operational threats, and guides readers through a comprehensive evaluation of internal control systems to mitigate these risks. DLC: Corporations--Accounting

Editorial Reviews
Product Description:
Created by the Sarbanes-Oxley Group LLC, this book includes practical, actionable advice that every Finance and IT professional must have at their fingertips as they pursue, or consider pursuing, a journey of Sarbanes-Oxley compliance

Reference Links


Hewlett Packard


COSO- National Commission on Fraudulent Financial Reporting

Association of Certified Fraud Examiners

Sarbanes Oxley Forum


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