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Roundtable
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What is the single most challenging Sarbanes-Oxley issue today?
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Matt Calkins
CEO
Appian Corporation
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The most challenging Sarbanes-Oxley issue today is managing change in the business and evaluating the impact of that change on the control environment; from new product introduction, to changes in accounting policy or complying with a stricter regulatory environment. The only constant in business is change, and companies need a solution that will change with them. Companies are looking for a solution that, in addition to supporting the documentation and assessment requirements for section 404, allows them to implement change quickly, while embedding the controls necessary to comply with Sarbanes-Oxley within their business processes.
Documenting, testing and evaluating the control environment was a daunting task when it was considered to be a one time event. With companies now realizing that Sarbanes-Oxley compliance is a continuous process, the task is even greater. It may take several months to identify and remediate the root cause of gaps found in the compliance effort. And, in the midst of resolving control deficiencies, business drivers and operations will change, perhaps causing a rework in the remediation effort. Business processes require agile systems that enable the business to execute as it should, not force the business to conform to application logic that was developed in computer systems years ago.
Companies that select solutions that enable business processes to work as they are designed to work are better aligned to manage and support Sarbanes-Oxley compliance in a cost effective way. Controls can be designed and implemented in a matter of days, not months. Additionally, controls that are automated are easier to test and detect, eliminating the reliance on external parties.
While managing change may be the most challenging issue today for Sarbanes-Oxley compliance, those that manage it well will have a competitive advantage. Companies that implement a solution that proactively monitors change and sends alerts when deficiencies are found are better aligned to maintain the control environment that has been established. In addition, those that embrace change and act on it quickly are more likely to succeed.
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