The advent of regulations that impact IT (SOX, PCI, FDCC, etc.) are considered by many as a costly nuisance. However, one could argue that the impact of these regulations that require stringent controls and accountability have resulted in higher levels of measurable security.
Earlier this week, one of the most well known regulations (SOX) came under scrutiny by the Supreme Court…specific to concerns around oversight. There was an excellent article published that illustrates the courts ruling:
The following is my summary of the results of the ruling:
1) The Supreme Court has ruled that the SEC now has the ability to remove Public Company Accounting Oversight Board (PCAOB) members “at will”, which represents a very significant change. Prior to this decision, the only way the SEC could remove a member of the board would be with “due cause”. The importance of this ruling centers around ensuring that the accounting rules and controls that have been established (as it pertains to SOX) are maintained, and enforced – and that oversight is not conducted by the PCAOB…but rather by the SEC. Thus, the change has created more accountability.
2) In terms of the impact on the SOX regulation, for those that have to comply, it’s business as usual.
Now, had the court ruled on a broader basis, they could have actually forced Congress to revisit the act altogether. Which for most public companies, if SOX went away they would jump for joy. Although…the practices that have been established to ensure compliance have been a worthy and valuable investment as it’s helped make companies better practitioners, resulting in the prevention of any additional Enron’s or WorldCom’s in today’s business environment.
Dave Eike
Shavlik Technologies