Significant Value with Internal Controls
company—an accelerated filer completing the second
year of Sarbanes-Oxley (SOX) 404 compliance, a private company
wanting to enhance internal-control quality, or a nonaccelerated
filer looking at initial compliance efforts for 2007—wants
to get as much value as possible for each dollar spent.
Although initial efforts may be motivated by legislation,
looking beyond compliance to achieving a market leadership
position through internal controls can deliver significant
Ignorance of the Law Is Not a Defense
In this digital age, most of us have installed software
on a computer. It’s basically the same process every
time. After downloading a program off the Internet or loading
a CD, you click “Next” through a series of screens
before arriving at the ubiquitous License Agreement. You
know the one: warning you to PLEASE READ THE FOLLOWING LICENSE
AGREEMENT CAREFULLY; written in legal jargon; and the approximate
length of War and Peace.
Sarbanes-Oxley Benefit Non–SEC-Registrant Audits?
to the accounting abuses observed at Enron, the writers
of the Sarbanes-Oxley Act of 2002 (SOX) felt a need to enhance
the independence of SEC financial statement audits by shifting
responsibility for audit oversight and auditor selection
to an audit committee composed of three independent directors,
and prohibiting auditors from providing certain consultation
services to audit clients.