No reduction in Section 404 controls
Filed in archive SOX by leon on March 05, 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.
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