Computers Are Often Used To Make Work Easier However Sometim

Computers Are Often Used To Make Work Easier However Sometimes Compu

Computers are often used to make work easier. However, sometimes computers can make work more difficult especially with poorly implementation. SOX is an important example of a poorly implemented database that has encountered. A database should have its specific intentions as much as data organization and management always exist as general functions. The SOX database implemented in 2011 was put in place to combat fraud by coming up with efficient accounting audit and management of financial records.

I think the developers failed to include technical aspects of fraud control into the system. They instead targeted the visible crimes leaving very many holes for exploiting the SOX system (Anand et al., 2014). The database seems vague from IT perspective. The database constitutes only two sections of codes relating to IT. These two sections merely meet the standards for testing IT sufficient auditing compliance by organizations.

The database seems to be far off the role of fostering sufficient auditing process for these organizations. Since inception, most audit companies struggle to figure out the IT protective aspects of the database. It seems that the developers mainly focused on the guidelines in using financial systems in preventing frauds but rather forgot the IT aspect if reducing the vulnerability of the system. For so many years, the database has failed to meet the technical roles of a database in system management and accounting regulation which are the critical reason why it was created. The SOX guidelines seem to forget about pertinent technical aspects of the system function (Cinarkaya et al., 2017).

The solutions to the mistake that was done are conducting technical analysis and installing appropriate fixing. Ideally, the database should target electronic management and safety of data rather than physical data management. This mistake of poorly implemented gave a false impression of database management in many companies that adopted the type of database in early days. From physical outlook, one could see that things are alright yet some technical rot was brewing within the system. It is clear that the developers of the SOX database missed some point while deriving and implementing the database and this should be fixed to enhance the computer-based operations (Anand et al., 2014).

Paper For Above instruction

The Sarbanes-Oxley Act (SOX) of 2002 was enacted to protect investors by improving the accuracy and reliability of corporate disclosures. The implementation of SOX included creating internal controls over financial reporting and establishing a regulatory framework for corporate accountability. Despite its noble intentions, the database systems designed to support SOX compliance have faced significant challenges, especially regarding their technical capabilities and implementation strategies. This essay critically examines the technical inadequacies of the SOX database, explores the reasons behind these shortcomings, and proposes strategic solutions to enhance its effectiveness.

At the core of SOX’s primary objectives is the reduction of financial fraud and the enhancement of transparency in corporate financial statements. To achieve this, organizations were mandated to develop robust control systems, often relying on specialized databases for audit trails, data integrity, and control compliance (Choi & Meek, 2011). However, the implementation in 2011 revealed a fundamental flaw: the database was primarily focused on compliance rather than on fostering effective IT controls. This misstep can be attributed to a narrow interpretation of the database’s purpose, emphasizing superficial adherence over comprehensive technical safeguards (Cinarkaya et al., 2017).

One notable deficiency of the SOX database is its limited scope concerning IT security protocols. The system consists of only two segments of code related to IT, which are ostensibly designed to meet auditing standards (Anand et al., 2014). These segments fail to integrate advanced cybersecurity features, such as encryption, access controls, or anomaly detection mechanisms, compromising the integrity of financial data and the system’s resistance to cyber threats. This gap indicates a neglect of the technical roles essential for securing financial data in today’s increasingly digital environment.

The failure to incorporate technical controls undermines the primary goal of the database, which is to provide a reliable environment for financial record management and fraud detection. Auditing companies report difficulties in assessing or enhancing the system’s IT protective features, leading to reliance on manual processes or supplementary controls. Such workarounds expose organizations to increased risk of fraud, data breaches, and non-compliance penalties. The root cause of this issue lies in the developers’ focus on regulatory guidelines for financial management while overlooking the critical IT aspects that ensure data security and system resilience (Cinarkaya et al., 2017).

Furthermore, the implementation of the SOX database reflects a tendency to prioritize physical data management—storing and organizing data—over electronic management and security. While physical controls are necessary, they are insufficient in isolating modern cyber vulnerabilities. The database’s design creates a false sense of security because superficial checks may indicate proper functioning, while beneath the surface, technical vulnerabilities persist (Choi & Meek, 2011). This disconnect emphasizes the need for comprehensive technical analysis and system upgrades to align with contemporary cybersecurity standards.

To rectify these shortcomings, organizations must undertake a systematic technical review of their SOX-related databases. Conducting thorough vulnerability assessments, penetration testing, and implementing encryption and multi-factor authentication are vital steps toward securing data (Gordon & Loeb, 2002). Additionally, integrating advanced analytics tools for anomaly detection can enhance fraud detection capabilities. Such measures will transform the database from a compliance-centric tool into a resilient platform that actively safeguards financial information.

Investing in robust IT infrastructure and staff training is equally essential. Organizations should ensure their IT teams possess the expertise to develop, maintain, and improve security controls within the database system. Moreover, establishing continuous monitoring and update protocols will help adapt to evolving cyber threats, ensuring the database remains effective over time (Kesan & Shah, 2001). These strategies will foster a proactive security posture that aligns with the original intent of SOX, promoting trustworthy financial reporting.

In conclusion, while the SOX database was established to improve corporate transparency and prevent fraud, its technical implementation has fallen short, exposing organizations to significant risks. The primary issues stem from a narrow focus on regulatory compliance, neglecting critical IT security aspects. By conducting technical analyses, upgrading system security features, and fostering a cybersecurity-aware organizational culture, organizations can enhance the efficacy of their SOX-related systems. Ensuring that databases are technically sound and resilient is vital for realizing the law’s intended benefits, contributing substantially to financial integrity and organizational accountability.

References

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