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Sarbanes-Oxley News & Developments
Sarbanes-Oxley Has Increased Effectiveness of Audit Committees and Corporate GovernanceBased on a survey by Deloitte & Touche.
> > James H. Quigley, chief executive officer of Deloitte & Touche, told an audience at the National Press Club that the Sarbanes-Oxley Act of 2002 is having a positive affect on corporate governance, causing audit committees to meet more frequently and for greater duration. Quigley said that there are clear signs Sarbanes-Oxley is having a positive impact on the work of audit committees.
The Deloitte survey showed audit committees are meeting more frequently that they did prior to passage of Sarbanes-Oxley. Of the 66 companies surveyed, the number of audit committees meeting more than six times per year increased from 11 companies prior to the passage of Sarbanes-Oxley to 39 following the enactment of the legislation.
Time spent in committee sessions has also risen significantly. Half the companies surveyed met for less than one hour per meeting prior to Sarbanes-Oxley. Post Sarbanes-Oxley, the number of committees meeting less than one hour dropped to 10 % of the survey participants.
Source: Hoovers
Published:2003-09-08
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