Compliance costs are going up
but are still manageable for many
Organizations continue to automate
more processes and cont...
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Keeping Pace with SOX Compliance: COSO, Costs and the PCAOB - Highlights from Protiviti’s 2014 Sarbanes-Oxley Compliance Survey

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To download the full report, please visit: www.protiviti.com/SOXsurvey

It’s been 12 years since passage of the Sarbanes-Oxley Act and, depending on the organization, approximately a decade that companies have been required to comply with the internal control over financial reporting standards as set forth in SOX Section 404.

In many respects, companies have made notable strides in automating and standardizing their controls and processes to make the SOX compliance effort as effective and efficient as possible. Yet, different hurdles continue to emerge. As revealed in the results of our 2014 Sarbanes-Oxley Compliance Survey, the Public Company Accounting Oversight Board’s (PCAOB) Staff Audit Practice Alert 11, “Considerations for Audits of Internal Control Over Financial Reporting” (which reports on the board’s inspections of 2012, 2011 and 2010 audits of internal control over financial reporting as performed by external audit firms), together with the introduction of COSO’s new 2013 Internal Control – Integrated Framework, are introducing new dynamics that organizations are continuing to address.

Our key findings this year include:
• Companies are getting started, albeit slowly, with implementing the new COSO framework.
• There is measurable fallout from the PCAOB’s inspection reports.
• Compliance costs are going up but are still manageable for many.
• Organizations continue to automate more processes and controls.

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Keeping Pace with SOX Compliance: COSO, Costs and the PCAOB - Highlights from Protiviti’s 2014 Sarbanes-Oxley Compliance Survey

  1. 1. Compliance costs are going up but are still manageable for many Organizations continue to automate more processes and controls Keeping Pace with SOX Compliance: COSO, Costs and the PCAOB Notable findings from Protiviti’s 2014 Sarbanes-Oxley Compliance Survey THERE IS A MEASURABLE FALLOUT FROM THE PCAOB’S INSPECTION REPORTS Do you plan to use COSO’s 2013 Internal Control Integrated Framework to guide your SOX documentation in the current fiscal year? Have you started to map the COSO 2013 Framework principles and points of focus to your organization’s key controls? YES We were early adopters and have mapped the principles and relevant points of focus in our existing ICFR documentation. YES We’ve reviewed our current ICFR documentation and mapped the principles and points of focus, and need to make more refinements to our documentation. YES Gaps exist within our ICFR structure and we have some remediation work to do. YES Our key controls are not sufficient, thus we need to rebuild them from scratch. NO We haven’t started yet. To review detailed results from the Protiviti’s 2014 Sarbanes-Oxley Compliance Survey, visit protiviti.com/SOXsurvey. © 2014 Protiviti Inc. An Equal Opportunity Employer M/F/D/V. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. Companies are getting started, albeit slowly, with implementing the new COSO framework. 61% YES 20% UNSURE 61% 19% NO 48% 1% 8% 29% 13% All Respondents Large Accelerated Accelerated Filer Filer Very much so 47% 59% 57% Probably 20% 20% 17% Not very much 10% 7% 14% Not at all 6% 4% 6% Don’t know/no opinion 17% 10% 6% Percentage of companies for which annual SOX compliance costs are $500,000 or less Percentage of companies that spend $1 million or more annually on SOX compliance If your external audit firm required significant changes to SOX compliance activities in 2013, to what extent do you believe those changes are a result of the PCAOB’s inspections of the accounting firms? Changes in SOX-related costs this fiscal year 47% 38% 2014 Increased 8% 10% Decreased 52% 45% 2013 To what extent does your organization plan to further aut0- mate its manual processes and controls within the next year? 2014 2013 Significant plans to automate a broad range 9% 16% of IT processes and controls Moderate plans to automate numerous IT 32% 31% processes and controls Minimal plans to automate selected IT 42% 43% processes and controls No plans to automate any further 17% 10%Stayed the same 28%

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