After 10 Years, What Has Sarbanes-Oxley Act Achieved?
Ten years after the landmark legislation was passed, the Institute of Internal Auditors (IIA) has weighed in on the impact of the U.S. Sarbanes-Oxley Act as a part of hearing held last week by the U.S. House of Representatives.
The Committee on Financial Services Subcommittee on Capital Markets sponsored the hearing for which the IIA submitted written testimony providing Congress perspectives on the importance of strong corporate governance, risk management, and internal controls as enhanced by Sarbanes-Oxley as it relates to financial reporting.
The IIA’s testimony stated the legislation “brought key financial reporting matters to the forefront of corporate consciousness and have resulted in meaningful improvement in the disciplines associated with the integrity of reported financial data and related operating results.”
The written testimony also went on to describe internal auditing’s role in strong corporate governance and offered assistance to Congress in impressing upon organizations the need to follow sound corporate governance practices in the pursuit of enhancing long-term investor confidence.