> -----Original Message-----
> From: Cameron Childress [mailto:[EMAIL PROTECTED]
> Sent: Tuesday, September 09, 2008 10:10 AM
> To: CF-Community
> Subject: Re: Cost of SOX Compliance
> 
> This is basically saying that the companies which stay will adjust
> their business models to compensate for the additional costs.  This
> could take the form of lower wages for employees and higher costs for
> good and services.  This is one of the significant impacts of
> virtually all compliance and regulation, even if the regulation itself
> makes you all warm and fuzzy inside.

As somebody that (selfishly) HATES SOX (since I have to take several hours
of training on it each year) I'm not sure the problem is that simple.

For one thing many of the requirements of SOX present an initial outlay,
yes, but then offer an undefined cost savings later.  Needing to better
track your data usage, storage and information is something that many
companies fail to do well.  When SOX compliance forces them to do so they
may grumble but find it very helpful later.

Another point is that SOX compliance does in fact reduce costs associated
with lawsuits in at least two ways.  Firstly since information (at least in
compliant companies) is better audited and tracked collecting information
related to a particular matter is much quicker and simpler.  Secondly being
fully compliant and audited generally makes for a much stronger defense
possibly leading to reduced settlement or rulings.

I'm not saying that every part of SOX is "good" or that even that I think
that the good could outweigh the bad: I'm simply saying that the data best
practices that result from it are generally (in my experience) more positive
than negative.

Jim Davis


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