The changing interaction of finance, information, and technology Essay
Information technology can be described as the systematic study of the industrial arts in terms of communicating knowledge conducive to learning. It includes the use of computers and telecommunications for the gathering, processing, safekeeping and distribution of voice, graphics, pictures, text and numbers from producer of information to another who is a user of such information . In addition, the Sabarnes -Oxley Act focuses on the improvement of communication the assertions in the balance sheet, income statement and statement of cash flows.
This improvement verges on more truthful cash, receivables, inventory, sales, purchases, selling expenses, administrative expenses, interest and other accounts. The following paragraphs will explain Information technology in the light of the Sabarnes -Oxley Act in detail. BODY: The changing interaction of finance, information, and technology was put on supersonic speed with the implementation of the Sabarnes -Oxley Act. The U. S.
Senate Judiciary committee reported its findings and spearheaded reform regulations to put a stop to a future Enron style fraudulent financial statement situation where the companies connived with their external auditor and use lawyers to present fraudulent financial statements. It was approved by the U. S, Senate with a vote of 97 -0 three months later . These will
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The new Sabarnes -Oxley Act -based management information system entails purchasing of new software and hardware that would increase operational resiliency. Many bank managers will infer this resiliency in terms of operational and credit risk management in accordance with the Basel II requirements. The Sabarnes -Oxley Act will include renovating the information system that would include making a plusher budgets that would be very evident in the banks’ branches The Sarbanes -Oxley Act requires that information technology be improved to produce valid and relevant information.
The old electronic data processing will give way to information technology. In addition, the Linux operating system will literally replace the Windows -based operation system because it rarely can be infiltrated by viruses, worm, and other computer disturbances. Linux is more affordable platform than the Windows operating system because is an open -source or free license software . Further, many companies have not yet complied with the Sabarnes Oxley Act in terms of implementing a more rigid and innovative fraud scanning work to keep a watchful eye over the financial institutions’ anti -money laundering programs.
The business process management program one one good information technology program is has yet been fully implemented to comply with the Sabarnes -Oxley Act because many people are still confused with this new technology. The business world is now in borderless economy. A person in California can sell his goods to a buyer in France. A seller in China can sell his low -priced goods to a buyer in New York. A doctor in India can learn be taught by a Doctor in Seattle through the use of the Skype chat software or teleconferencing.
In short, The Sabarnes -Oxley Act includes the monitoring of these inter country sales and purchase activities. One good reason for such delay in BPO is because some information technology people spread misinformation or vague information that include bragging that a simple java development software can improve sensitive information transfer when it does not. Many IT personnel will claim that their varying solutions is better than the other IT experts thereby confusing the minds of its Information Technology customers .
Conclusion Information technology involves the use of computers and the internet to pass vital and confidential information from one party to another. The Sabarnes -Oxley Act was instituted to prevent a repeat of the Enron scandal, the Worldcom scandal and others of similar fraudulence. The act mandates that all companies must comply with the provisions of the Sabarnes -Oxley Act of the United States. In conclusion, there are key open questions yet to be resolved in the area of the Sabarnes -Oxley Act on IT management.
One such definition is that there is a misconception that only the IT personnel are responsible for information security. Reality will bite them because the physical and administrative controls are needed to fully comply with the Act in terms of security . Administrative controls include instructing the security guards to allow only authorized persons into the restricted offices like the accounting office, the information technology office. Another key open question is Can the company afford the new Information Technology softwares and hardwares?. Lastly, another open question is Can the company afford to hire IT experts.
These two questions are important because some small companies cannot afford to implement all the IT requirements imposed by the Act in terms of Information Technology internal control . Works Cited Bielski, Lauren. “IT Spend to Pick Up: ABA/TowerGroup Survey Finds Budgeting Still Stringent, but “Top Line” Spending Will Happen. ” ABA Banking Journal 96. 1 (2004): 43+. Bielski, Lauren. “Link and Go with BPM: Business Process Management Systems Grow Up, Get Relevant, and Promise “Auto Efficiencies”. ” ABA Banking Journal 98. 7 (2006): 43+. Questia. 13 June 2008 <http://www. questia. com/PM. qst?
a=o&d=5016834230>. Ge, Weili, and Sarah Mcvay. “The Disclosure of Material Weaknesses in Internal Control after the Sarbanes-Oxley Act. ” Accounting Horizons 19. 3 (2005): 137+. Kohn, Stephen M. , Michael D. Kohn, and David K. Colapinto. Whistleblower Law: A Guide to Legal Protections for Corporate Employees. Westport, CT: Praeger, 2004. Landoll, Doug. “Does IT Security Myth the Point? Information Security Programs Often Fail Because They Are Based on Myths and Misconceptions. ” Security Management Jan. 2005: 110+. Tansey, Stephen D. Business, Information Technology and Society. New York: Routledge, 2002.