VideoHelen Shaw, CFO.com | US
April 10, 2006
- Sarbanes
I agree with Charlie, David and John. The percentage of individuals engaged in business that truly understand
financial reporting is probably very small. They make mistakes
or are open to fraud perpetrated by ethics deficient "experts".
The market crashes, the public is shorn and their savings harvested.Every one engaged in business should understand
these financial reports and their personal responsibility to ensure reporting
accuracy. Jessica Wall-Byrnes
Posted by Jessica Wall-Byrnes | Apr 13, 2006 8:34 PM ET
- What about the shareholders
I have read a number of articles on the challenges management of companies have faced in implemenation of SOX 404. A common theme is the excessive cost. As an investor, I am very happy to pay for something that is going to provide me with insight on significant weaknesses and I suspect if this question is posed to their shareholders, they too may have the same view. My question to management then is if there is overwelming support from the investment community for this type of legislation, and shareholders are willing to absorb the cost, why the resistance to it?
Posted by John Ferrari | Apr 12, 2006 9:34 AM ET
- Methinks thou doth attest too much
Shakespeare would have loved the SOX 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.
An intersting 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?Posted by Charley Best | Apr 11, 2006 2:19 PM ET
- Compliance with SOX
I was greatly disturbed to hear about the company where the stress to meet compliance resulted in an employee going to hospital.
However, SOX compliance should not take this type of toll on your organization. Rather, SOX should be an opportunity to improve the organization.
Further, the costs of compliance with Sox, while expensive, should be recouped in organizational efficiency and enabling the organization to respond more quickly to market opportunities.
If you are looking at ways to control costs, look at second and third tier consulting firms who can deliver results which equal or surpass the big four - yet at a price tag which can be significantly less than the big four.Posted by David Mertz | Apr 10, 2006 6:33 PM ET
