ABSTRACT
In order to gain insight into the process of standardization and the role of Accounting Information Systems (AIS) in standardization, this chapter focuses on the Sarbanes-Oxley Act of 2002 (SOX). In describing the compliance efforts of Trinity Industries, a US-based manufacturing firm, it also focuses on how it continuously leveraged Information Technology (IT) to evolve its accounting, control and audit processes. Much of literature on accounting standards in general, and SOX in particular, is focused on the macro-economic implications of mandatory accounting rules, e.g., organizational transparency, cost of capital and participation in stock markets. Diverse processes need to be standardized prior to the development and implementation of an IT solution, especially if the objective is also to streamline the control environment. The chapter concludes with some reflections on the multi-level nature of accounting standards, the potential for organizational transformation motivated by mandatory standards and the role of AIS in complying with them.
