“More forward-looking, visionary, and—quite frankly—better-managed companies

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“More forward-looking, visionary, and—quite frankly—better-managed companies are going to look at processes and systems, and ask if there are better ways to do it,” said Turner, who is also a former chief accountant for the SEC.

COPYRIGHT © 2006 BY THE BUREAU OF NATIONAL AFFAIRS, INC., WASHINGTON, D.C. 6

HR managers can utilize new information systems technology to help them with all these tasks and enable their companies to tighten controls and simplify auditing and reporting requirements. Such technology allows executives to drill down past financial reporting to the underlying internal processes—such as work scheduling, the use of contingent workers, and recruiting. Through continuous monitoring of critical controls, this new breed of information technology flags anomalies to alert management to possible fraudulent activity. “Using this technology, executives receive internal control information alongside financial data in a coherent and single view,” Deloitte & Touche USA LLP said in a 2005 report. Dynamic HR managers can leverage SOX compliance to improve internal systems and deconstruct processes to bring about “best practices” such as tightened data security, segregation of duties, rigorous training, and careful attention to reporting major changes in employee payroll and benefits. By doing so, they may position HR to lead the corporate cultural transformation.

BNA BOARD OF EDITORS

Paul N. Wojcik, President and Chief Executive Officer Gregory C. McCaffery, Chief Operating Officer and Editor-In-Chief Robert A. Shew, Executive Editor Gail C. Moorstein, Managing Editor Bob Combs, Copy Editor Lyda Phillips, Staff Editor

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