Does Sarbanes-Oxley mean audit offshoring?

Filed in archive SOX by leon on February 2, 2009

Offshoring has become more prevalent in recent years. Most firms send part of their operations to cheaper places overseas.

But offshoring of audit functions is becoming more popular and, according to this report, a lot of it is aimed to reduce fees that comes from the the increased reporting and compliance requirements mandated by Sarbanes-Oxley. But as the report says, it's fraught with dangers. Sure, clients would welcome a reduction in fees but there would be some serious concerns, particularly in regard to quality control, data protection and confidentiality. For the big firms, it means asking hard questions about which procedures could be sent offshore safely. No easy answers on that one.

Related Entries:

Offshoring: Far From Home, Close to Home, and In Your Drivew... - 30 March 2005
New Person Comes Knocking At My Door On Offshoring 2.0 - 21 July 2005
Arbitraging labor(Offshoring)...Advantage, but future/long t... - 13 December 2005
Reverse flow of offshoring back to America - 22 January 2008

« Bailout transparency prob... | Main | Citigroup greed »

Permalink: Does Sarbanes-Oxley mean audit offshoring?

Tags: offshoring section noscript openx want noscript+section sarbanes+oxley these+banners

Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/142314

Addthis

Ask

Blinklist

del.icio.us

Digg

Fark

Facebook

Google

Lycos

Ma.gnolia

Mr Wong

Netscape

Netvousz

Newsvine

StumbleUpon

Slashdot

Tailrank

Technorati

Wink

Yahoo

Vote for Does Sarbanes-Oxley mean audit offshoring?:

Currently 7.00/10
1
2
3
4
5
6
7
8
9
10

Rating: 7.00 out of 2 vote(s) cast.

Response from: Travis (02/06/09 8:47am)

A lot of people are concerned about sending jobs overseas in fears of security leaks. As the global economy is shrinking, I see this being less of an issue. Many countries now have regulations to avoid most of the leaks that companies are concerned about. And as far as quality control, companies have been sending support overseas for years. After you make a sale, support is where your customers interact with the company. If you're okay with what they are doing now, why not allow audits as well?