Enforcing the Sarbanes-Oxley (SOX) Act will force the company to implement a detailed financial reporting system to its current Finance and Accounting System. While the planned system will include producing financial reports, its complementation and implementation date us relatively far. As such, GGFRT will have to modify the current system to produce financial reports. Additionally, the implementation of the Management Reporting System will also have to comply with the Sarbanes-Oxley (SOX) Act. While financial reporting is a fundamental legal requirement in many countries, it has several benefits to the organization. Implementing financial reporting at GGFRT will offer the stakeholders insights into how the company is performing (Hosinzadeh et al., 2021). The financial data generated by the reports will also allow the company to measure its progress, competitiveness, compliance, and expenditure incentives.
A functional requirement for the planned modification is that both the current Finance and Accounting System and the Management Reporting System will generate all financial statements valuable to the stakeholders. These financial statements will draw data from different systems, including the Precise Financial Reporting System once ready, the Fleet Maintenance System, and the Route Optimization/Freight Tracking System. For non-functional requirements, the planned modifications will reduce the time taken to produce financial reports. Additionally, the modifications will allow all stakeholders to access and generate the reports at their convenience. Timely reports are beneficial to making critical decisions whenever required. As the IT programmers create a database to store critical information, all senior managers will access this information and generate different reports. For instance, they can generate a report on cars that are on transit, a maintenance financial report, or a list of drivers currently on duty.
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Reference
Hosinzadeh, M., Valiyan, H., & Abdoli, M. (2021). Dynamic Competitive Capabilities and Financial Reporting Quality. Journal of Knowledge Accounting , 12 (1), 133-157. http://doi.org/10.22103/jak.2021.15682.3234
