After 10 Years, What Has Sarbanes-Oxley Act Achieved?

Sarah Woodman, Global events journalist
August 01, 2012 /

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.

 

1 Comment for “After 10 Years, What Has Sarbanes-Oxley Act Achieved?”

  1. Hal Garyn

    It is great to see The IIA’s written testimony to this subcommittee being picked up by ‘inaudit.’ There is a particular sentence in the testimony that should be brought out, as part of the subcommittee’s focus with this hearing was to gain insights on the impacts (benefits and burdens) of SOX at its10 year anniversary. That sentence reads, “Like any piece of significant legislation, there likely remain opportunities to better focus some aspects of the legislation and related regulations, clarify its intent, and reduce the associated costs.” The entire written testimony can be viewed on The IIA’s website at: http://bit.ly/OGRRf9.

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