Ask FERF (financial executives research foundation) about ... Sarbanes-Oxley 404 solutions.

• Position: Resources

As the deadline for Section 404 compliance gets closer, and most of the 404 testing is completed, many companies are likely focused on remediation of any internal control deficiencies. In conjunction with making control process improvements, many companies are now starting to think about how to sustain compliance efforts after year one. A partial solution to the sustainability question could come in the form of compliance software purchases.

A report issued by Forrester Research indicates a rise in the number of customers for the leading solutions and the number of compliance software purchases. Furthermore, the 15 percent of companies that currently use compliance software is also expected to rise through 2005.

Based on a review of offerings conducted by Financial Executives Research Foundation (FERF), most solutions should provide the ability to manage all steps of a compliance project. However, the following table focuses on features and functionality that may assist in vendor and product selection.

This is by no means an exhaustive list or a recommendation. Vendors to consider in this space include: Certus (formerly Nth Orbit), Paisley Consulting, Open Pages and Grant Thornton's Business Advisory Services.

Sarbanes-Oxley Section 404 Compliance Phases DOCUMENTATION Feature/Capability Function/Description Framework integration * Gives the ability to integrate/import internal control frameworks such as COSO and COBIT, as well as frameworks provided by the accounting firms or developed internally; * Can be used for compliance with other regulations, such as Basel. Work flow documentation * Automates documentation of business processes by accounts and locations; * Provides adequate support for complex audit or testing workflows, such as routing purchase orders for electronic approval or alerting management when shipments are late; * Captures relationships between processes, accounts, controls, risks and business entities; * Employs a flexible methodology that allows control documentation by process or by account. Audit process automation * Promotes the use of electronic workpapers through automated control documentation, but provides the flexibility to include existing and hard copy reference documents. Data...