SOX 404 compliance process shows room for improvement
It has been almost eight years since the passage of the Sarbanes-Oxley Act (SOX), yet companies still report inefficiencies in their implementation of internal accounting controls, according to a survey by Ajilon Finance Solutions, a provider of senior level financial and operations expertise. The survey polled 210 accountants in conjunction with the Institute of Management Accountants’ Inside Talk Webinar Series. It revealed that 73 percent of finance professionals believe their company could be more efficient in the implementation of Section 404(b) of the Sarbanes-Oxley Act, one of the most contentious and costly aspects of SOX requiring management and external auditors to report on the adequacy of the company's internal control over financial reporting.
- Poor training and education in the area of processes and controls
- Lack of focus in project management and utilizing resources
- “Compliance at all costs” mentality that is focused on effectiveness but not efficiency.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.