"Enterprises that choose one-off solutions for each regulatory challenge they face will spend 10 times more on compliance projects than their counterparts that take a proactive approach," Gartner says.

Gartner recommends that half of a company's Sarbanes-Oxley budget be allocated to implementation and remediation issues, including directors' and officers' insurance and increased consulting fees; 30 percent should be spent on internal analysis, including redundant audits for the next three quarters; and the remaining 20 percent on software upgrades and new purchases.

Several software and consulting firms recently formed a group to help companies comply with Sarbanes-Oxley and other legislation.(1)

1. Chemical Week, June 23, p. 33.