Tuesday, January 10, 2006
Finance Execs Unimpressed With Sarbanes-Oxley Tools
Two-thirds of finance executives are disappointed in their compliance technology purchases. They aren't thrilled about higher costs and staffing requirements, either.
With the second full year of Sarbanes-Oxley compliance efforts winding down for accelerated filers, CFOs in those companies are taking a hard look at the technologies they invested in to support those activities. And in many cases, they're less than impressed, according to an Accenture survey of 152 finance executives and the same number of IT executives at organizations with $1 billion or more in annual revenue. Two-thirds of the finance respondents rate Sarbanes-Oxley compliance assistance tools as only somewhat effective or worse. IT respondents are a little more enthusiastic about the tools, with a majority (56 percent) describing them as very effective or extremely so.
The study also throws light on two other areas of frustration with Sarbanes-Oxley compliance: overall costs and staffing issues. IT managers report that Sarbanes-Oxley efforts accounted for 9.8 percent of their group's budget, on average, in the previous 12 months. Finance executives report a slightly lower proportional cost, at 9 percent of their department's budget. While about three-quarters of respondents say that their organization currently has the necessary resources to support Sarbanes-Oxley reporting, more than half (53 percent) of the IT execs and 42 percent of the finance leaders say that it is extremely likely or very likely that they will require additional human resources to support compliance activities over the next one to three years.
posted by Brian Moran @ 8:50 AM