e-journal

Ramifications of the Sarbanes Oxley (SOX) Act on IT governance

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Purpose – In most firms, accounting and financial information and reporting systems are either
incorporated or embedded in computer-based information systems (IS). Despite the important roles
that these computer-based IS play in facilitating the SOX Act compliance initiatives, the act is silent on
the roles of the CIOs, although it does stipulate specific functions for the CEOs, CFOs, and the auditors.
Based on a detailed analysis of the extant literature, this article argues that IT units, under the
leadership of the CIOs, contribute significantly in the procurement, design, implementation, and the
governance of these computer-based IS. The paper aims to discuss these issues.
Design/methodology/approach – The researchers generate and empirically test hypotheses using
a panel data set obtained from press releases issued by firms following the hiring of CIOs between
1999 and 2005.
Findings – The results reveal that, after the enactment of the SOX Act in 2002, many firms hired new
CIOs in the post-SOX Act period. Also, many of these executives were hired to fill newly created Chief
information officer (CIO) positions. The results support the argument that the SOX Act has influenced
the roles of senior IT executives and IT governance.
Research limitations/implications – Although this study focused on hiring trends, there are
other characteristics associated with CIOs that might have an impact on corporate IT governance.
Future studies could investigate whether or not, for instance, firms reported fewer IT material
weaknesses before or after the hire of the CIOs.
Originality/value – This research presents the argument and detailed discussion that while the
SOX Act does not explicitly require the CIOs to sign off on the accounting/financial statements and
reports, their role is fundamental in making the firm meet the SOX Act compliance standards.

Keywords Accounting, Business strategy, Chief information officer, Information systems,Information technology governance, Sarbanes Oxley Act

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Ketersediaan

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Informasi Detail

Judul Seri

International Journal of Accounting and Information Management

No. Panggil

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Penerbit

: Emerald Group., 2014

Deskripsi Fisik

International Journal of Accounting and Information Management Vol. 22 No. 2, 2014 pp. 134-145

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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