For Business Process & Applications Professionals (Length: 12 pages)

March 9, 2006

Sarbanes-Oxley Compliance 2006: Taking Internal Controls To The Next Level

by Paul D. Hamerman

with John Ragsdale, Michael Rasmussen, Ian Schuler, Elisse Gaynor


Executive Summary (This is a document excerpt)

The initial Sarbanes-Oxley (SOX) compliance cycle was a fire drill that exposed many opportunities for improvement. In 2006, companies are putting the many lessons learned into practice by adopting a more refined approach to SOX compliance. To take controls compliance to the next level, a controls maturity model is useful. At higher levels of maturity, companies are able to monitor internal controls on an ongoing basis, rather than a periodic basis. An optimized controls environment is the highest level of maturity, where controls effectiveness is measured frequently and controls are continuously improved. To achieve the more advanced stages of controls maturity, a variety of automated tools are needed to supplement the capabilities of transactional systems.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemCompanies And Auditors Struggle Through The Initial SOX Cycle

itemSOX Compliance Evolves In Sophistication And Efficiency

itemInternal Controls Must Move Up The Maturity Curve

itemTechnology Is Essential For Moving Up The Curve

recommendations

itemFocus Beyond Compliance To Find ROI

WHAT IT MEANS

itemCompliance And Governance Are Separate But Related Themes

This report is based on discussions with leading SOX-related software vendors, Forrester and third-party survey data, vendor financial data, regulatory statements, and analyst observations.

Related Research Documents

itemControls Monitoring Solutions Gaining Momentum

August 29, 2005, Quick Take

itemThe Forrester Wave™: Sarbanes-Oxley Compliance Software, Q1 2005

April 7, 2005, Tech Choices

itemSarbanes-Oxley Solutions — Invest Now Or Pay Later

March 11, 2004, Market Overview

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Analyst: Paul D. Hamerman
Technology: Financial Management, Governance, Risk, & Compliance, IT Management, IT Strategy, Planning, & Governance, Packaged Applications, Security & Risk
Geography: North America

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