more-arw search

Internal Controls Regarding Financial Reporting Improved Since Sarbanes-Oxley, Says Study

The internal controls that govern financial reporting in various organizations

The internal controls that govern financial reporting in various organizations have improved since the passage of the Sarbanes-Oxley Act in 2002, according to most business leaders and market participants who took part in a recent survey conducted by global consulting firm Protiviti.

These survey participants said that the internal controls that control these processes have either moderately or significantly improved since complying with the regulation became required.

"Sarbanes-Oxley has had its share of controversy in the past, but nearly 70 percent of respondents in our survey reported that the internal control over financial reporting structure in their organizations has improved since compliance with Sarbanes-Oxley Section 404 became a requirement," Brian Christensen, Protiviti's executive vice president, global internal audit, said in the statement.

He said that these firms are continuing to improve their compliance processes and internal controls even 10 years after the legislation was passed.

Most of the executives who took part in the survey said that automating internal controls was key to benefiting from the new legislation. Only 17 percent, or one-sixth of respondents indicated no further plans to automate processes. 

Topics: