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Sarbanes-Oxley News & Developments
Most Following Original SOX Schedule on Internal Controls Despite ExtensionMost U.S. companies are moving ahead with preparations for compliance with internal control provisions.
> > More than a third of multinational companies are moving faster than required and are planning or considering compliance for fiscal 2003, a year early, according to PricewaterhouseCoopers Management Barometer.
Section 404 of the Sarbanes-Oxley Act (SOX) require companies to file a management assertion and auditor attestation on the effectiveness of internal controls over financial reporting. In the final rule provisions, the compliance date was extended until June 15,2004 for U.S. filers and April 15, 2004 for foreign private filers.
Moving Forward Now, Though Not Required
According to the survey, 60% of senior executives said their company plans to retain their original schedule for most Sarbanes-Oxley Section 404 preparation, despite the extension, while 37% said they would spread these activities over a longer time horizen.
Most of those surveyed (86%) expect to streamline and reduce cost for their company SOX compliance process in 2004. 23% of senior executives expect to place a major focus on cost reductions, while 50% expect to give cost cuts moderate attention and 13% limited attention. 7% say they will not focus at all on cost reductions, leaving 7% not certain.
Once companies complete most of their Section 404, their next challenge will be to make the process more effective. Although many companies are looking for cost reductions, it is too early to tell where they will be able to make cuts.
Source: Pricewaterhouse Coopers survey article
Published:2003-08-18
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