The 2002 Sarbanes-Oxley Act Issues - Essay Example

SOX compliance issues might require the company to adopt and report on internal financial controls and procedures. Additionally, SOX might affect the company’s information systems which entail information security and IT organization (Spears, 2009). SOX might define the executive’s accountability for IT irregularities and the need for modern information systems in the company.

SOX may influence information systems at Wobbly Wheels (WW) Distribution Company. SOX issue may compel the executive, CFO to adopt a detailed finance and accounting system that will enhance the success of the accurate financials. SOX will influence the company’s route optimization and freight tracking system where the executive, CIO, and CFO will offer freight origin and destination details. In addition, SOX compliance issues will advocate for the adoption of a detailed financial reporting process that entails WW’s daily financials thus affecting its management reporting system.

The company can modify the systems to address SOX compliance issues by allocating more resources to information technology systems used in the management, distribution, and warehousing. The increased allocation will enhance improved accuracy in financial reporting. The company can also adopt modern technologies that will help in implementing standard auditing and accounting procedures and methods. The company should train its IT staff and support specialization to boost efficiency. Additionally, WW should secure its databases, minimize network outages, and reduce IT costs.