Sarbanes-Oxley Compliance: Achieving More for Less
While compliance is clearly a cost center, many companies have been able to reap strong gains from their compliance efforts. According to a new study “Lessons Learned from Compliance Efforts: Executive Summary”, by the 404 Institute of KPMG LLP, some companies implementing Sarbanes-Oxley compliance programs report being able to quickly reduce costs, while achieving lower deficiency rates as well as other benefits.
This report focuses on how they achieved these results, and the tactics companies can use to increase both the effectiveness and efficiency of their programs.
“A majority of companies said that they have seen an overall drop of 20 to 30 percent in the cost of complying with section 404 over the past three years.”
According to KPMG’s survey of more than 900 executives with compliance responsibilities, a successful compliance program includes:
- Higher degree of centralized transaction processing and controls, which are preventive rather than detective in nature
- Automating key activities
- Embeding compliance efforts within the business to reduce testing costs and enhance internal control awareness across the organization
Larry Raff, executive director of the 404 Institute and a KPMG partner, said
“When standards are set enterprise wide and the responsibility is shared throughout the organization, everyone begins to understand the importance of internal controls…compliance becomes part of the fabric of the organization.”
The results of KPMG’s survey are available for free download on their website.
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