Compliance: Two-thirds of firms claim they've nailed it

Two-thirds of businesses claim they have the technology and processes in place to ensure compliance with corporate governance legislation such as Sarbanes Oxley (Sox) and Basel II.

The survey of 147 businesses from France, Germany, the Netherlands, the UK and the US found a higher level of IT preparedness for corporate governance than other recent research has suggested.

But the research, sponsored by finance systems vendor Coda, suggests businesses are still holding back IT spending on compliance because the regulatory requirements are too new and too vague.

David Turner, group marketing manager at Coda, said Sox is not just a checklist that companies can work towards.

"There's a lot more room for interpretation than you would expect," he said. "That's why there hasn't been a huge uptake in systems. No one is quite sure what systems to put in place."

The research also revealed significant geographic differences between who is responsible for ensuring compliance. In the US, 80 per cent of respondents said the CFO handles compliance, while in the UK, 40 per cent said they have a dedicated risk person who deals with it.

Despite the difficulties interpreting the technology needs for corporate governance and compliance, Turner said all companies are now taking it seriously.

"Everyone realises it is coming down the pipeline for them all," he said. "Also they are getting pressure from the markets. We're finding private companies saying they need to demonstrate a Sox-level of compliance because investors and customers are demanding it."

The research was carried out by PMP and the National University of Ireland in Galway.