INFORMATION TECHNOLOGY REQUIREMENTS FOR COMPLIANCE WITH SECTION 404

The problem faced by Information Technology
departments is the lack of direction in complying
with the Act. Section 404 of the Act addresses the
requirement of effective internal controls regarding
financial statement reporting being in place, and
that external auditors attest that the management
statement stating the existence and effectiveness of
the controls is correct. Companies are struggling
with how to supply management the necessary
assurance that the internal controls are effective.
The method used in this study was the Delphi
method. This method utilized individual interviews
to elicit the intuitive information that was
available from experts in the analyzed field.
Each company has its own unique situation in
meeting the compliance regulations of the Act.
Analysis of the data further indicated that IT
departments have the capability to contribute to the
compliance efforts, especially when there was a
clear definition of their appropriate role. Finally,
it was revealed the importance attributed to
compliance with the Act, while investigating some of
the problems experienced.

Autorentext

After a 25 year career in accounting with Bayer A.G., the author began a new career in academia. This manuscript brings together the accounting background and the information systems of the doctoral degree.

Klappentext

The problem faced by Information Technology departments is the lack of direction in complying with the Act. Section 404 of the Act addresses the requirement of effective internal controls regarding financial statement reporting being in place, and that external auditors attest that the management statement stating the existence and effectiveness of the controls is correct. Companies are struggling with how to supply management the necessary assurance that the internal controls are effective.The method used in this study was the Delphi method. This method utilized individual interviews to elicit the intuitive information that was available from experts in the analyzed field.Each company has its own unique situation in meeting the compliance regulations of the Act. Analysis of the data further indicated that IT departments have the capability to contribute to the compliance efforts, especially when there was a clear definition of their appropriate role. Finally, it was revealed the importance attributed to compliance with the Act, while investigating some of the problems experienced.