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Friday, November 11, 2005

Sarbanes-Oxley Act Adds to Costs But Pushes Companies To Prepare

Compliance burdens posed by the Sarbanes-Oxley Act are proving to be costly for many I.T. departments, according to Gartner Inc. But companies may be better equipped to meet any new federal regulations thanks to the processes they have developed for complying with the law, I.T. executives said last week.

Gartner estimates that the government's Sarbanes-Oxley mandates have led to an average increase of 3.3 percent in corporate I.T. costs. The financial reporting law has spurred increased spending in areas such as records management and security, as well as purchases of new tools needed to ensure the accuracy of financial data, the firm says.

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