Tuesday, February 14, 2006
CFOs Seek Sarbox Triage
Since its enactment in 2002, the Sarbanes-Oxley Act has been impressing observers with its sweep. From banning executive loans and auditor conflicts of interest, to setting up financial sign-offs by top executives, to governing audit committees and whistle-blowers, Sarbox cuts a wide swath through Corporate America.
In the first few years of compliance with the act, many finance chiefs seemed too busy to step back and analyze it. Now, however, most sizable companies have ample experience with the toughest parts of Sarbox: certification under Section 404 (governing internal controls over financial reporting) and Section 302 (governing sign-offs of financials by senior executives). With the hectic pace abating somewhat, some CFOs are willing to sound off on Sarbox's shortcomings. And one of the biggest problems many have with the act is its very sweep.
posted by Brian Moran @ 9:08 AM