April 11, 2006
Methinks thou doth protest (or was that attest) too much
Shakespeare would have loved the SOX and financial compliance market. Everyone is a victim in terms of cost/liability (Filer, Audit Firm, Investor, etc) and yet everyone is also a benefactor in terms of improved processes/client billings/information. The good stuff always cuts both ways.
On Wednesday, April 12th, the SEC Advisory on Small Business will be tele-conferencing to undertake a final review of its recommendations with respect to SOX 404, capital formation, and so on. But rest assured the focus will be on the provisions related to Internal Control over Financial Reporting (SOX 404) and the cost/benefit argument.
An interesting trend is emerging that some observers may have missed. While the initial impetus to SOX and financial restatements may have been some questionable ethics and financial engineering techniques at big name companies, it looks like what is emerging is a significant gap in the understanding, application and disciplined procedural execution of accounting standards across a significant minority of publicly traded firms. The reality is that reporting on the results of a publicly traded company is complex and detailed. Isn't it time we "upped" our accuracy, financial hygiene and standards? Don't we owe it to investors and their faith in the market?
To learn more about cost-effective tools to streamline your company's SOX compliance effort please go to www.issuescentral.com for information on the Compliance Playbook(R). Canadian-based filers needing to comply with MI 52-109 and/or SOX please go to www.compliancepartner.ca.
On Wednesday, April 12th, the SEC Advisory on Small Business will be tele-conferencing to undertake a final review of its recommendations with respect to SOX 404, capital formation, and so on. But rest assured the focus will be on the provisions related to Internal Control over Financial Reporting (SOX 404) and the cost/benefit argument.
An interesting trend is emerging that some observers may have missed. While the initial impetus to SOX and financial restatements may have been some questionable ethics and financial engineering techniques at big name companies, it looks like what is emerging is a significant gap in the understanding, application and disciplined procedural execution of accounting standards across a significant minority of publicly traded firms. The reality is that reporting on the results of a publicly traded company is complex and detailed. Isn't it time we "upped" our accuracy, financial hygiene and standards? Don't we owe it to investors and their faith in the market?
To learn more about cost-effective tools to streamline your company's SOX compliance effort please go to www.issuescentral.com for information on the Compliance Playbook(R). Canadian-based filers needing to comply with MI 52-109 and/or SOX please go to www.compliancepartner.ca.
