SOX, compliance, and power relationships

Abstract

There are several tactics CIOs can use for SOX compliance implementation. A pivotal one is understanding their relationship with the CEO, CFO, and auditors.

How to decompress the Pressure - The moderating Effect of IT Flexibility on the negative Impact of Governmental Pressure on Business Agility

“…In addition to the pressure it puts on the business side, it is also known to influence the adoption of information systems [22]. These various regulations often affect IS of companies as well IS [22,23]. As an example, during the introduction of the Sarbanes-Oxley Act (SOX) in 2007 companies discovered that in most cases they did not have the appropriate IS to address the compliance levels of SOX [24], due to e.g.…”

A Framework for Organizational Compliance Management Tactics

“…An example of penalties for individuals is creating social disincentives. As these tend to be intangible, they might take the form of reprimands, 'naming and shaming', suspension, unfavorable mention in oral or written assessments and the consequent loss of reputation and status [9,11,41]. Providing performance feedback is a proven and inexpensive management tactic for improving employee behavior [45,46].…”

“…With regulations such as the Sarbanes-Oxley Act, organizations and individual CEOs and CIOs face severe penalties for non-compliance [10,11]. In addition, scandals and unethical firm behavior can severely damage an organization due to unsatisfied customers, shareholders, employees and other stakeholders [1,12].…”

Competitive advantage from mandatory investments: An empirical study of Australian firms

“…In the case of mandatory investments, the firm does not have this choice. To ensure compliance, the firm is forced to invest regardless of any existing business strategy (Braganza and Franken, 2007).…”

“…In a global economy, firms need to comply with a wide range of national and international government regulations that have implications for their information system (IS) (Braganza and Franken, 2007;Williams, 1994). For example, firms in various countries have recently been affected by new auditing regulations based on the Sarbanes-Oxley Act (SOX) (Marnet, 2007).…”