Scala Business Solutions has announced that its proven Signature implementation methodology will play an important role for companies that need to bring their internal control systems into compliance with the requirements of the Sarbanes-Oxley Act.
Applicable only in the United States, Sarbanes-Oxley requires company executives, boards of directors and independent auditors to take specific actions to achieve greater corporate accountability and transparency.
While this act only has direct implications for local companies that have financial trackers in the United States, the requirements are closely paralleled by local financial compliance regulations such as the King II act and the Basel Capital Accord for the banking sector, says Shamik Sinha, CEO of Scala Africa.
"These requirements, in combination with shorter reporting deadlines and the legal burden on executives to be absolutely certain of the information presented in financial statements, present a substantial challenge for many large companies," he says.
Powerful tools like the Microsoft Office Solution Accelerator for Sarbanes-Oxley, announced by Microsoft earlier this year; and the iScala Collaborative ERP system provide companies with a more effective way to create and manage internal control systems and improve financial reporting according to government requirements.
"The deployment of a cost-effective and standard ERP system brings major elements of best practice in corporate governance to companies. In turn, the use of a proven implementation methodology like Signature throughout a deployment provides an excellent foundation for building a fully-compliant internal control system," he says.
With Scala's ERP functionality and the Microsoft Office Solution Accelerator for Sarbanes-Oxley, companies can gain vital data transparency throughout the enterprise to help reduce the risk of non-compliance. Built on top of the Microsoft Office System, the accelerator combines software components, templates and architectural guidance, allowing customers and partners to implement complete solutions that enhance visibility over their financial processes and internal controls.
Scala's Signature implementation methodology was developed more than 7 years ago to cut the risk and time often associated with ERP software implementations. Signature offers standard processes that are well documented throughout an implementation project to serve as the basis for any internal control system that a company chooses to work with. It includes risk assessment and recommends the involvement of auditors to make sure the implementation is congruent with the company's overall quality control process.
However, Sinha warns that having an ERP system alone does not provide compliance; it is the company's management of their control environment and associated audit tasks that leads to compliance.
"Like local regulations Sarbanes-Oxley, is about management taking accountability for internal processes. Globally, management is being required to be able to do a step-by-step analysis of each process within their companies. Together, Scala and Microsoft provide tools for control and transparency of internal financial management, no matter where in the world a company operates, is incorporated, or on whatever stock market it is traded," concludes Sinha.
Share