Filed in archive
SOX
by leon on March 5, 2008

Welcome to the nightmare. The biggest gripe about Section 404 controls is that they will not get easier and will not reduce over time. No matter how long companies have to get used to it.
Now five years into Sarbanes-Oxley and it looks like those concerns are justified. A new survey of 300 companies published in Compliance Week shows that over 80 percent of companies responding said they expected no better than a 20 per cent reduction in key controls going forward.
It gets worse still if you drill it down further. More than half said they expected no more than a 10 per cent reduction and one in four expected no more than something between 10 and 20 per cent.
Significantly, Auditing Standard Number 5 approved last year by the Securities and Exchange Commission amidst claims by the regulator that it would reduce unnecessary costs and make things less prescriptive has not lived up to its promise.
Permalink: No reduction in Section 404 controls
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/115907
Mr Wong
Vote for No reduction in Section 404 controls:
|
Rating: 9.00 out of 1 vote(s) cast.
|
Response from:
David Walter
(03/06/08 10:47am)
Response from:
Welcome to the nightmare. The biggest grip about Section 404 controls is that they will not get easier and will not reduce over time. No matter how long companies have to get used to it. Now five years into Sarbanes-Oxley and it looks like those concer...
Response from:
Ideoblog
The SEC has been asserting for years that all it takes to reduce SOX internal controls costs is to tweak auditing standards or issue guidances. The latest effort, AS 5, was supposed to make a big difference. Except that it
Subscribe
Use the search to look for other interesting posts
| RSS | See all blog subscribe options |
|
What is RSS? | |
| Yahoo! |
|
| Addthis |
|
| Bloglines |
|
| Newsletter | |
| Follow us on Twitter! |
















However, the lack of reduction in key controls does not mean that the SOX compliance process cannot be more efficient. Many clients are successfully implementing tools to assist in consolidating the data, automating the process and generating meaningful and intuitive dashboards. This has significantly aided management in converting SOX compliance from a project into a process which is part of everyday operations.
In fact, many of our clients are beginning to take the process one step farther by uniting their SOX compliance efforts with other governance, risk and compliance processes. By combining disparate roles and initiatives, companies have enjoyed significant savings and efficiencies. Again, software solutions are enabling such value creation by bringing lots of information together in a single repository, performing automated processes and assessment, and creating powerful, actionable dashboards.
Even though the number of key controls may not be decreasing, hopefully managers can take other steps to gain greater efficiencies in the SOX compliance process.
Thanks for the information … spot on!