In an interview with CFO.com, retired Senator Oxley is reported to have said that he is unhappy with the implementation of the Sarbanes-Oxley Act especially Section 404, by the PCAOB through Accounting Standard 2 (An Audit of Internal Control Over Financial Reporting Performed in Conjunction with An Audit of Financial Statements). He felt it was far too prescriptive and much more expensive than anyone anticipated.
With Senator Oxley as the new non executive vice chairman of NASDAQ, one can only hope that this will translate into substantial changes to reduce the financial burden and at the same time maintain the level of compliance required by the Act.
This is definitely achievable and can happen through increased reliance on the work performed by Internal Audit groups for the purposes of complying with the Sarbanes Oxley Act particularly section 404. Internal audit departments whether in-house or outsourced are staffed by competent and experienced professionals with as much subject matter expertise as an external auditor. Additionally, they possess a certain level of independence through a direct reporting line to the Corporate Audit Committee.
1 year ago