{"id":1413,"date":"2010-08-05T07:00:25","date_gmt":"2010-08-05T15:00:25","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=1413"},"modified":"2010-08-05T07:00:25","modified_gmt":"2010-08-05T15:00:25","slug":"compliance-has-it-been-worth-it","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/compliance-has-it-been-worth-it\/","title":{"rendered":"Compliance: Has it Been Worth it?"},"content":{"rendered":"

Sarbanes Oxley. \u00a0It’s eight years since it has been on the books. \u00a0Small companies have tried their hardest to avoid having to comply with it. \u00a0 Many large companies have questioned whether it was worth it. \u00a0And foreign companies have stayed away from being listed on the US markets because of it.\u00a0A new survey tries to answer the question of whether there is really any value in Sarbanes Oxley.<\/p>\n

The survey was conducted by Privoti<\/a>, a risk and business consulting company. \u00a0The results are in, and the answer seems to be a resounding affirmation that, however painful, Sarbanes Oxley is worth it. \u00a0In fact 70 percent said that the benefits outweigh the costs. \u00a0Digging a bit deeper, the survey found that the longer a company had Sarbanes Oxley provisions in place, the higher regard the company had for the controls. \u00a0Of first year companies putting Sarbanes Oxley in place, only 39 percent thought that the benefits outweigh the cost and pain of implementing it.<\/p>\n

It seems that much of the cost of implementing Sarbanes Oxley is on the front end during the initial implementation. \u00a0Once it’s there, the on-going costs are significantly less. \u00a0Fourth year costs are less than 50 percent of the cost incurred during the first year of implementation. \u00a0Part of the reason is that often consultants are brought in \u00a0the first year to get the system running, but once it’s in place, in-house staff are able to keep it running. \u00a0Additional efficiencies are still yet to be had too. \u00a0One statistic that comes out of the survey is that more than 80 percent of companies have automated less than 50 percent of the key controls that they are \u00a0monitoring.<\/p>\n

Bob Hirth of Privoti commented that \u201cwhat was once a compliance \u2018burden\u2019 for many companies, managed in an ad hoc or project manner and at a high cost, has evolved into something broader than its original objective. \u00a0While not everyone agrees with all of its requirements, respondents in our survey certainly recognize that SOX has triggered benefits including increased efficiency and effectiveness of processes and operations, greater understanding of control design, and operating effectiveness.\u201d<\/p>\n

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Sarbanes Oxley. \u00a0It’s eight years since it has been on the books. \u00a0Small companies have tried their hardest to avoid having to comply with it. \u00a0 Many large companies have questioned whether it was worth it. \u00a0And foreign companies have…<\/span><\/p>\n

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