The Sarbanes-Oxley Act is helping independent directors and audit committees to hold management accountable for its actions, according to a new PricewaterhouseCoopers Management Barometer survey.
According to the survey, 88 percent of senior executives report that directors at their company are expected to have more input on a variety of issues; 73 percent say their board will be more vocal on risk identification and risk management; and 72 percent say their company has established a whistle-blower complaint process.
- 64 percent report that their audit committee reviews the company’s 10-Q before it is filed with the SEC.
- 63 percent have made changes or improvements in the skill sets of their audit committee.
- 57 percent of audit committees and 47 percent of boards have performed a self-assessment in the past 12 months.
- 46 percent have a formal process for evaluating auditor performance.
- 43 percent have revised their audit committee charter as a result of either Sarbanes-Oxley or proposed stock-exchange listing standards.
- 31 percent of audit committees have engaged outside advisors to assist in meeting new requirements.
- 28 percent have appointed, or plan to appoint, a lead director or non-executive chairman since the passage of Sarbanes-Oxley.