Costs involved in Sarbanes Oxley Compliance have exceeded almost all companies expectations. Since SOX is an ongoing effort rather than a one time task, companies must now try and find out how to reduce and rationalize Sarbanes Oxley costs going forward. In year two, one of our clients approached us for a solution to reduce SOX costs. Now this is not an easy task. But the project threw up certain best practices an enterprise can adopt to reduce Sarbanes Oxley costs going forward.

1. Go in for a automated Sarbanes Oxley compliance software solution which can address lifecycle management and optimization challenges. Sarbanes Oxley Software compliance solutions, do reduce the costs in the long run.

2. Take the help of internal audit department in monitoring internal controls.

3. Establish responsibility on the process owners for maintaining the documentation for their processes uptodate. Process owners should be held accountable for all processes owned by them.

4. In line with the point number 3 above, process owners should sign-off internal control documentation as part of their duties.

5. As a measure to reduce costs, a process can be established whereby quarterly sign-offs for internal control documentation can be done as part of Section 302 certification.

6. Ensure strealined communication among various forums such as internal audit, external auditors, process owners, senior management etc. Lack of proper communication is the most common cause of increased SOX costs.

7. Finally, all said and done, management's assessment is evaluated by the external auditor and a report on internal controls is issued. It maskes sense to focus on what the external auditor requires. Cause the final sign-off will be from him.

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