When the Sarbanes-Oxley Act of 2002 (SOX) became law, it was proclaimed to be one of the most far-reaching reforms in U.S. business. At that time, the internal control reporting provisions of Sarbanes-Oxley, in particular, received considerable attention, and they continue to do so. Organizations have come a long way in the past eight years – what once was an onerous compliance “burden,” managed in an ad hoc or project manner, has evolved into something broader than its original objective. As an example, for some companies, Sarbanes-Oxley compliance has delivered numerous benefits, including increased efficiency and effectiveness of processes and operations.
Most reporting companies have learned that the initial years of complying with Sarbanes-Oxley require significant expenditures in terms of time, money and other resources. In subsequent years, these costs generally decline relative to revenues and, in most cases, in absolute terms. That said, Sarbanes-Oxley still has a high level of cost, effort and administrative burden for many organizations – enough to warrant a review of strategies and tactics for maximizing value from the compliance process.
This study assesses strategies and tactics companies have employed to derive value from the Sarbanes-Oxley compliance process. It is important for organizations to examine, on an ongoing basis, the current state of their compliance processes to ensure they are cost-effective and add value to the organization. This is achieved not only through greater process and budgetary efficiencies, but also by viewing these efforts as an ongoing activity that should mature and improve over time.
It is with this perspective that Protiviti designed its Sarbanes-Oxley Compliance Survey. The study provides valuable and important insights into how companies are complying with the internal control related provisions of this legislation. We report on the current state of Sarbanes-Oxley compliance for all types of organizations, the related costs, associated benefits and value, as well as how to achieve a desired state of verifiable compliance and sustainability, hopefully at a reasonable cost. Respondents in this survey represent virtually all industry sectors.
Download the entire report:
2010 Sarbanes-Oxley Compliance Poll