Stricter more stringent rules required firms to change their reporting processes, enabling more transparency. The resultant strict rules enacted necessitated firms to adopt modern accounting practices that could only be employed through innovative technology interfaces. The integration of automated or technological applications although costly in terms of resources and time has proven to be an effective control measure for the authorities while simultaneously assisting corporate leaders to manage their internal systems. Other benefits of using technology in finance have been the development of enhanced marketing, communication, research and transaction technologies by organizations.
Technology has been described as the application of individual, logical or material approach to resolving an impasse that leads to enhanced efficiency. It has been credited with the improvement of business operations in firms including administration, communications (from postal letters to email, mobile phones, telecasts, etc.), trading (online trading or e-commerce), automated production line technology, and research facilities among others. The need for embracing advanced technology by corporations was highlighted by the tighter regulations enacted by the Securities and Exchange Commission (SEC) in conformity with compliance rules relating to requirements regarding evaluation of internal control over financial reporting and management certification requirements mandatory to amendments under the Securities Exchange Act of 1934 that were adopted on June 5, 2003, pursuant to Section 404 of the Sarbanes-Oxley Act. Companies needed advanced technology to detect undesired movement in inconsistencies, automated reporting, upholding customer assets, violations, etc., hence avert bad practices while enhancing the companies efficiency (WS&TStaff, 2005).
Corporate governance encompasses the compliance to rules or procedures, traditions, edicts, .and statutes touching on how a firm is directed, managed or controlled.