Sarbanes-Oxley (SOX) has been the core project of internal audit departments for the past two years, but that focus is shifting. According to a recent survey by Protiviti, three out of four companies see the need and are taking steps to better balance SOX compliance with broader risk management activities and priorities. Sixty-two percent of these respondents plan to bring in additional internal audit resources as part of this rebalancing initiative, and 81 percent believe they will benefit moderately or significantly as a results of these efforts.
This survey was conducted by Protiviti from July 1, 2005 to August 15, 2005. The survey was designed to assess how companies are approaching the process of “rebalancing” internal audit functions after first-year SOX compliance projects and the past and future roles of internal audit departments in regulatory compliance efforts.
Among the key findings of Protiviti’s survey:
- Most internal audit functions see the need to rebalance.
- Rebalancing will be a perpetual activity, with less hours devoted to SOX compliance in Year Two and beyond.
- In the effort to rebalance, many functions will add resources and increase internal audit budgets.
- Many companies will look for outside assistance with their rebalancing efforts.
- Internal audit will continue to play a key role in SOX compliance, through internal control documentation efforts will decrease.
Two out of three survey respondents had the title and responsibility of chief audit executive, internal audit director or general auditor. Combined with individuals having the title of internal audit manager or above, 91 percent of those participating in the survey held managerial positions.
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