Revolutionizing the segregation of duties

Abstract

The accounting profession has seen a backlash due to business scandals that took place in the past. Particularly in response to such situations, the United States Congress, enacted the Sarbanes-Oxley Act to enforce reporting controls on businesses. These controls are designed to increase stakeholder confidence through improved accuracy and reliability within the financial statements of companies. However, almost two decades later, I suggest that through a system that utilizes technology, we can increase stakeholder confidence while fulfilling the legal responsibilities required by the Sarbanes-Oxley Act. Advancements in technology are currently mitigating past human control errors. Although systems that utilize technology do exist, I will illustrate the factors that need improvement for an automatized reporting process with an internal control monitor to satisfy all demands. Modernizing the controls for businesses could achieve the utmost stakeholder confidence through continuously monitored financial accuracy and reliability.