What is The 404 Compliance IT Management Oxley Risk Sarbanes Section Solution?

Once again, we are faced with a pretty complex compound term that needs to be defined. So
let us break it down into its components.

404 Compliance means compliance with Section 404 of the Sarbanes-Oxley Act (also called SOX)
of 2002 which stipulates that every company publicly traded has to formulate internal
processes for financial reporting, and keep documentation of these processes which
encompass both procedures and controls. It is not enough to create the internal processes,
the company must also try out these systems and find out where their weaknesses lie.

Documentation is inclusive of accounting processes and activities of every financial
software application in use by the company.

Thus, 404 Compliance IT Management will require the use of content management software. The
name of the Sarbanes-Oxley Act came from its sponsors Paul Sarbaney (Senator) and Michael
Oxley (Congressman). It is unclear what Oxley Risk or Sarbanes Section implies as there is
no data on the Internet about either of these compound terms.

However, there are risks involved in compliance due to the complexity of the processes and
corresponding documentation required from companies. The risk of non-compliance is that the
officers of the company that did not comply with the SOX requirements will have to be
penalized, as stipulated in the Sarbanes-Oxley Act itself. Studies were done that showed
that companies that do comply may find compliance costs to be rather high and may result in
lower market share price later on.