Re: Sarbanes-Oxley / my opinion

[Al Mac <macwheel99@xxxxxxxxxxx>]

Comments a few places,

> It's not clear how well the "report-it-to-the-investors" part of
> the legislation is working. If anyone knows of an annual report
> that has included a SOX-type complaint in an audit letter,
> please tell me more about it.

I just got the IBM annual report and went looking for SOX statement from 
the auditors.  I found an extremely wishy washy statement saying that IBM 
maintained in all material aspects, effective internal control over 
financial reporting.  In my opinion, the Ernst & Young breach was 
not  effective internal control, but I am not sure if that happened before 
or after the date of the audit, and it could be that back stabbing 100% of 
IBM employees does not qualify as a material aspect of SOX.

> If annual reports of that genre
> can't be found, then we're left with two hypotheses:

three hypotheses

>   1. Thousands of publicly traded companies are doing a great
>       job running their business with sound internal control
>       regimens in all functional areas (including IS).
>
>   2. The fear of annoying a client and not being invited to
>       perform next year's audit has proved to be more compelling
>       than the fear of failing to observe the letter of Sarbanes-Oxley.

3. Companies are failing to meet SOX standards, but auditors are also 
failing to locate the gaps.

>       [Quite candidly, it's hard to believe hypothesis #1 given the
>        testimonies I've personally heard from managers across a
>        broad cross section of manufacturing industries.]
>
> There are several other IT compliance requirements that pre-date
> SOX and here's a link to information about the better known ones:
> <http://www.unbeatenpathintl.com/ITstandards/source/1.html>http://www.unbeatenpathintl.com/ITstandards/source/1.html 
>
>
> You mention BRMS (Business Rule Management System)
> software and that genre of tool can help an enterprise develop
> and maintain operational policies.

Gee, I thought BRMS was just a fancy IBM backup system.


> Milt Habeck
> Founder/President
> Unbeaten Path International
>
> <http://www.upisox.com>www.upisox.com
> (888) 874-8008
>
> +++++++   +++++++   +++++++   +++++++   +++++++   +++++++
> From: "Mark Allen" <<mailto:scprideandms@xxxxxxxxx>scprideandms@xxxxxxxxx>
> Date: Mon, 27 Mar 2006 14:45:59
> Subject: SOX and BRMS saves of Application data and Objects
>
> Looking for some ideas from somebody who's been thru this or at least part
> of it.  I know a little about BRMS and not even sure "what" the SOX
> Compliance people MIGHT be looking for.  I know this is vague but its all 
> I got for now. just looking for some general ideas.

-
Al Macintyre