|
Abstract
Sarbanes Oxley Act of 2002 was enacted by the US Congress
to put forth a set of new system of checks and balances
on the financial reporting requirements of companies.
This was enacted after a spate of corporate reporting
scandals struck the United States leading to erosion
of investor confidence in financial reporting and management
disclosures. The Sarbanes Oxley Act (referred to as
SOX), is designed to increase the accuracy and reliability
of corporate disclosures by requiring broader standards
than the Generally Accepted Accounting Practices (GAAP).
The focus of this paper is to illustrate how the wider
compliance initiative embarked upon by organizations
can be used to identify and improve the process loopholes
that exist today. In fact, one of the key gains that
are being factored into all ROI calculations for SOA
compliance takes into account the long term benefits
of process standardizations and improvements. The paper
illustrates the meeting points between various transaction
controls with the financial reporting elements. The
objective is not to interpret or “value judge”
a particular method of accounting business transactions
or evaluate alternate methods, in a pure accounting
sense.
Author
Satish Panchapakesan
To know more about Wipro in retail and logistics, go
to www.wipro.com/retail
|
