From Protiviti’s The Bulletin – Volume 2, Issue 3
No one is arguing that the oft-stated assertion that the first year cost of complying with Section 404 of The Sarbanes-Oxley Act of 2002 (SOX) is sky high. In fact, surveys and other sources of evidence make it clear that the administrative burden of compliance is significant enough for most companies to warrant a review of strategies and tactics for maximizing value-add from the compliance process. While the SOX-stated purpose of protecting investors by improving the reliability for public reporting is an important goal, both executive management and directors are asking tough questions. This document provides a sample of these questions.
For most companies, the administrative burden encountered during the first year of Section 404 compliance warranted a fresh look at the overall compliance process. This questionnaire focuses on strategies for integrating compliance activities around Sections 404 and 302 of The Sarbanes-Oxley Act of 2002 with the objective of achieving a sustainable internal control structure.