The Sarbanes-Oxley (SOX) – Implications for Business and Technology. Dallas, Texas June 16, 2004. SOX Panelists. SOX – Implications for Business and Technology. Kapila K. Anand National Industry Director Real Estate & Hospitality Advisory Services KPMG LLP.
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The Sarbanes-Oxley (SOX) – Implications for Business and Technology
June 16, 2004
SOX – What is it? What’s new?
The SOX Investment
Where is the Money Going?Excerpts from Wall Street Journal Article(Companies Complain About Cost Of Corporate-Governance Rules, 2/10/2004)
Some companies are recognizing this as an opportunity to transform their organizations and processes into world class operations to support real time reporting and disclosure.
Financial Reporting Process
- System Integrators
- Audit Committee
The Sarbanes-Oxley compliance project engages the whole organization, from the Boardroom to the front-line
SOX – How does it affect me?
Quantifying the ROI from Process Improvements & Automation
Straight Hours Saved
Quantified by: Duration of Original Task(s) – New duration of task(s)
Time Saved * Cost of FTE (~$200,000)
Reduced overtime travel and food expenses
Estimate these costs
Other Related Benefits
Reduction in Operational Risk
Reduction in possibility of human error
Time historically spent on activities related to reconciliation's / pursuing issues
Reduced costs through eliminating need for time consuming reconciliation
Other Less Tangible Savings
How time is reallocated
Increased Analytical Time
Picking up new tasks that were previously not completed due to time constraints
Recognition of management team listening to issues
Lead to reduced turnover
Higher level of motivation
Reduced Dependence on External Consultants and Temporary Employees
Through automation significant costs were removed from employees daily activities freeing them up to focus on more value added activities
Distribution of Staff Tasks
Prior to Process Improvement
Post Process Improvement
Through improving the staff’s quality of work life the group has realized significant reduction in turnover and the associated cost savings