Sarbanes Oxley Consulting

Global Recession Didn't Hamper Sarbanes-Oxley Compliance Efforts, According to ...

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Protiviti's 2011 Sarbanes-Oxley Compliance Survey – which includes feedback from a combination of more than 400 executives, corporate SOX leaders and audit professionals across a variety of industries – assesses the current state of SOX compliance, related costs, associated benefits and value, as well as how to achieve a desired state of verifiable compliance and sustainability. This is the second year the survey has been conducted, and this year it includes two new sections focusing on the impact of the economic events of 2009 on ongoing compliance with SOX requirements and the exemption of non-accelerated filers from Section 404(b) compliance as stipulated in the Dodd-Frank Act.

"Our survey results demonstrate that nine years after the passage of Sarbanes-Oxley, companies remain committed to continuously improving their compliance efforts – despite ongoing economic challenges and global instabilities," said , Protiviti executive vice president and leader of the firm's global internal audit and financial controls practice. "Organizations' systems of internal control over financial reporting need to be dynamic and constantly improved in order to effectively react to and address changes in operations and the external environment, such as new regulations, technology, accounting principles, industry issues and business models."

The vast majority, 89 percent, of respondents said the global recession did not have an adverse effect on their SOX compliance efforts. "In reality, it may take a number of years to gain a clear picture of the effects the global economic crisis may have created," Hirth said. "If an organization reduced its workforce or streamlined its processes with a resulting effect on its internal control structure, mistakes may increase over time. Given this, it will be interesting to monitor these survey results over the next few years to see what patterns develop.

Sarbanes-oxley Act Audit Reform - Worldwide Professional Audit ...

In the United States, the Sarbanes-Oxley Act (SOX) has introduced new standards of accountability on the board of directors for U.S. companies or companies listed on U.S. stock exchanges. Under the Act members of the board risk large fines and prison sentences in the case of accounting crimes. Internal control is now the direct responsibility of directors. This means that the vast majority of public companies now have hired internal auditors to ensure that the company adheres to the highest standards of internal controls. Additionally, these internal auditors are required by law to report directly to the audit board. This group consists of board of directors members where more than half of the members are outside the company and one of those members outside the company is an accounting expert

Title I consists of nine sections and establishes the Public Company Accounting Oversight Board , to provide independent oversight of public accounting firms providing audit services ("auditors"). It also creates a central oversight board tasked with registering auditors, defining the specific processes and procedures for compliance audits, inspecting and policing conduct and quality control, and enforcing compliance with the specific mandates of SOX.

Title II consists of nine sections, establishes standards for external auditor independence, to limit conflicts of interest. It also addresses new auditor approval requirements, audit partner rotation policy, conflict of interest issues and auditor reporting requirements. Section 201 of this title restricts auditing companies from doing other kinds of business apart from auditing with the same clients.

Title III consists of eight sections and mandates that senior executives take individual responsibility for the accuracy and completeness of corporate financial reports. It defines the interaction of external auditors and corporate audit committees, and specifies the responsibility of corporate officers for the accuracy and validity of corporate financial reports. It enumerates specific limits on the behaviors of corporate officers and describes specific forfeitures of benefits and civil penalties for non-compliance. For example, Section 302 implies that the company board (Chief Executive Officer, Chief Financial Officer) should certify and approve the integrity of their company financial reports quarterly in order to establish accountability.

Title IV consists of nine sections. It describes enhanced reporting requirements for financial transactions, including off-balance-sheet transactions, pro-forma figures and stock transactions of corporate officers. It requires internal controls for assuring the accuracy of financial reports and disclosures, and mandates both audits and reports on those controls. It also requires timely reporting of material changes in financial condition and specific enhanced reviews by the SEC or its agents of corporate reports.

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