Mobility Fraud, Abuse & Waste – The Sarbanes Oxley (SOX) Connection
Sarbanes Oxley regulations passed by U.S. Congress in 2002 was designed to protect investors from fraudulent accounting activities by corporations. The intent of SOX is to detect and deter fraudulent or improper financial reporting by concentrating on issues related to the preparation of financial statements, issuer reporting/disclosure and audit failures. SEC Chairman, Mary Jo White introduced a policy to police technical, non-fraud violations. In explaining the policy, Chairman White stated, “minor deficiency violations that are overlooked or ignored and can feed bigger significant deficiencies, and, perhaps more importantly, can foster a culture where laws are increasingly treated as toothless guidelines”. The concept stems from the idea that even leaving small unaddressed discrepancies conveys a lack of importance and diligence to the maintenance of accurate reporting and accounting.
Out-of-control spending on mobility embodies an innate possibility of internal control deficiencies revealing instances that may rise to the level of material weakness requiring SEC filings and potential restatement of earnings. The opportunity to inadvertently misappropriate company funds presents itself daily and often goes unnoticed and why our utility customers use MobilSentry™ as a safeguard to protect their mobile assets. Click here to read our savings tip, The Threat of Out-of-Control Mobility Costs to Sarbanes Oxley Compliance.