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WithumSmith+Brown Global Assurance Offers Insight Into Common Technology Mistakes That Impede Compliance For Small and Medium Sized Firms
Ineffective Organizational Structure Often Root Cause of Various Compliance Threats and Weaknesses
Princeton, NJ, Feb 7,2007 -
WithumSmith+Brown Global Assurance (WS+B GA) www.wsbga.com, a full-service provider of Sarbanes-Oxley (SOX) compliance, internal audit, IT and risk management consulting services, has offered insight into some of the common technology-related mistakes small and medium sized businesses (SMB) make that cause non-compliance through a list compiled by the firm. The list, created by Executive Vice President Sumit K. Pal, includes:
• The lack of proper scoping of applications relevant to Internal Controls (for the regulatory compliance involved).
• No proper segregation of duties among IT teams.
• The exclusion of IT persons in the compliance project team from the onset of the compliance process.
• The absence of a comprehensive, high-level IT strategy to synchronize with the overall business strategy along with detailed IT plans and procedures and process documentation.
• No adequate patch management procedures for the network and operating system(s) and upgrades for software applications in use.
• The inability of change management procedures to adequately reflect application and infrastructure changes in the organization.
“The fact is that many SMB’s often fail to meet technology compliance requirements because they do not have the organizational structure in place that segregates IT duties and plan for them accordingly,” Pal said. “Technology is too often relegated to a secondary concern or focus by SMB’s and must be fully integrated into an overall corporate plan.”
SMB’s are at greater risk than ever before because of the diversity of threats to data and networks. According to a CSI/FBI Computer Crime and Security Survey in 2005, the average loss per respondent for unauthorized access to information rose $251,689 from $51,545 to $303,234 between 2004 and 2005, and an increase of $187,023 was reported in the average loss per respondent for theft of proprietary information.
Tom Basilo, Chairman and CEO of WS+B GA commented, “Gartner research indicates that 2006 IT financial compliance management spending will rise to between 10 percent and 15 percent on IT budgets. This illustrates the seriousness of the threats involved and that SMB’s must be aggressive in addressing their IT issues to remain secure and competitive.”
About WithumSmith+Brown Global Assurance, LLC.
WS+B GA is headquartered in Princeton, New Jersey and provides counsel and project support for corporate governance, risk assessment and Sarbanes-Oxley compliance services and other internal audit related services. The firm serves a diverse clientele ranging from public middle-market companies to pre-IPO and private equity / venture capital-backed corporations. WS+B GA offers clients innovative methodologies that are entrepreneurial in spirit resulting in a customized approach stressing hands-on, personalized service. For more information please visit
www.wsbga.com.
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