Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Tuesday, March 28, 2006

CFOs Surveyed Regarding SOX

CFO Magazine surveyed CFOs and other senior finance executives at 237 companies subject to the Sarbanes-Oxley Act regarding what should be changed about SOX. Results are published in the March issue and are available here.

The top changes suggested are:
  • Repeal or revise section 404 (74%);
  • Raise the threshhold for what constitutes a material deficiency (70%);
  • Allow section 302 certifications to the best of the executive's knowledge and belief (55%); and
  • Better define material event (53%).

Interestingly, section 404 was also identified by many (35%) of the responders as the section that has been the most beneficial to the company and its shareholders.

1 comment:

Marc said...

Allison - I think the CFO response and your comment highlight what the sober critics of SOX have suggested from the beginning: every company, of course, could have better controls than they had pre-SOX, but that didn't mean that mandating the implementing of such controls at costs dictated by the accounting firms would be good for all, or even most, companies.

BTW - This is a very interesting blog. I'm glad I came across it.