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With all of these unfortunate scenarios in mind, you may be tempted to ignore SOX The reality today is that the law is poorly understood by almost everyone in the business world, and an exact, tested definition of compliance, as well as the actual pattern of enforcement, remains somewhat vague as of 2005 Perhaps we should just let the auditors sweat the details and phone in some lukewarm compliance efforts as a sop to what business leaders decry as overzealous government regulators Let the bean counters deal with it and get on with your career I think this would be a mistake Maybe, you ll even dream, SOX will go away on its own Certainly, impressive lobbying dollars are being spent with this purpose in mind And, the law itself may disappear or be so watered down that it becomes a moribund artifact of a scandal-prone era.

Summary

That is false comfort, in my opinion The public, as represented by both the government and the legal profession, are onto us, and we better get moving or our businesses will suffer greatly from non-compliance with the new mode of accountability in business, SOX or no SOX Even if SOX goes away, there are still a number of comparable threats to American business that remain in force If SOX is repealed, or watered down, there will still be dozens of federal and state laws concerning corporate fraud to contend with, as well as a variety of SEC rules that serve the same purpose And if all of those laws fail to check corporate malfeasance and errors, a swarm of securities class action litigators eagerly await your next misstep.

Additional concerns deal more with people and their actions: Authentication: Ensuring that users are who they say they are; Authorization: Making a decision about who may access data or a service; Assurance: Being con dent that the security system functions correctly;.

So where does that leave all of us There is a fourth way, which is to use the tight controls demanded by SOX as a pretext for improving the operations of your business SOX can be a catalyst for change in your business After all, who among us wants a business that is less well controlled than it could be I think we all know deep down, what matters in corporate life is not compliance with arcane SEC rules, but compliance with sound business practices, regardless of what the law says There are ample punishments for not complying with sound business practices The market, the consumer, and the lawyers all have the ability to crush those who lose money, steal, or act incompetently Bad business is bad for business No Senate subcommittee is needed to validate that law of nature.

3,840

On this point, however, I have also been advised that SOX is about accuracy in financial statements and nothing else that SOX has nothing to do with operations I disagree What is a financial statement if not a reflection of a set of operations To look at SOX only in the narrowest possible terms, which is as a law to assure accurate financial statements only and ignore the reality that business operations generate those financial statements is to miss the point, in my opinion Our challenge, then, if we choose to accept it, is to look at a law that most of us have considered a nuisance, or even a threat to our existence, as an opportunity This is a leap of thought for some of us, but a leap that I would recommend making.

13

SOX has the potential to give us a chance to get better at what we do If we reflect on the past history of business, we will see that this is a lesson we have learned before..

relied on social engineering techniques of deception and taking advantage of our desire to get something for nothing in order to be spread The worm arrives as an attachment to an email that offers something tempting, such as confidential information, free pornography, or - a very clever ruse - a message saying that the attachment is the receipt for some expensive item you supposedly ordered This last ploy leads you to open the attachment for fear your credit card has been charged for an item you didn't order It's astounding how many people fall for these tricks; even after being told and told again about the dangers of opening email attachments, awareness of the danger fades over time, leaving each of us vulnerable.