Foreign Companies Repeating US SOX Mistakes
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Foreign companies are so focused on the deadline for compliance with the Sarbanes-Oxley Act, mainly Section 404, they are failing to make the process sustainable. The finding comes from a survey "Looking forward: evaluating early experiences with Sarbanes-Oxley " by accountant PricewaterhouseCoopers. 36 project leaders from large foreign private issuers (PFIs) took part. The experience of year one of the SOX act in the US looks to be repeated in the rest of the world. Many companies struggled to embed compliance and failed to embed them in process. Companies that fail to build in compliance into ongoing processes face having massive ongoing costs. Many companies see their Section 404 compliance activities as a completely discrete piece of work. Indeed separate from other compliance activities and processes. Raising "controls consciousness" is considered to be a medium-to-high priority for 86% of those surveyed. Only 19% of companies have a formal mechanism for knowledge transfer from the Section 404 team to management. Another finding is the excessive number of controls, companies perceive the have in their organisation. 50% of the companies felt their processes for identifying and addressing control deficiencies were well established and working effectively.
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Similar Areas Selected Books Keywords Section 404 and foreign companies
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