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Sarbanes-Oxley as a Management Tool

By Ericka Chickowski on 2010-07-02


The Supreme Court says Sarbanes-Oxley will be with us for a while, striking down a key provision of the law but leaving most of it untouched. That may be good news for managers who have grown accustomed to SOX. A recent survey of 400 executives across the U.S. conducted by consulting and audit firm Protiviti shows that the longer leaders are exposed to SOX compliance efforts, the more likely they are to see the benefits from these activities.
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70% of executives engaged for four or more years in SOX compliance believe the benefits of compliance outweigh the costs.

In their first year of compliance, only 39% of those executives felt the pros of SOX compliance outweighed the cons.

87% of all executives believe SOX compliance offers at least some benefit beyond fulfilling SEC demands.

Executives report a 50% reduction in compliance costs among organizations four or more years into their SOX compliance efforts.

Close to 80% of all organizations—experienced or not—automate less than half of their SOX controls.

Nearly 70% of participants said their organizations remain highly dependent on spreadsheets, the top inefficiency in SOX compliance.

Almost half of organizations now perform all of their SOX compliance work in-house.

Outsourcing of SOX work is more common during the first years of compliance.

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