Why Your Clients May Voluntarily Comply with Sarbanes-Oxley
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Source: Insight, the Magazine of the A study by Foley & Lardner, a law firm, reveals that 78 percent of reporting private companies have voluntarily complied with some Sarbanes-Oxley rules including officer certification of financial statements, independent directors, and others. Lenders and state regulators are inquiring about the status of internal controls of private companies. Public companies looking to acquire private companies are expecting to see documentation of internal controls and processes. Companies that may contemplate public offerings or being acquisition candidates also see the wisdom of developing better practices. And beyond these external influences, private companies want to become better by adopting better business practices, including better internal controls. A survey by PricewaterhouseCoopers gives the following reasons for voluntary adoption: Best business practices 60% Avoid future problems 59 Outside recommendation 43 Future sale of the company 26 Current solution to a business problem 19 Potential public offering 17 Here is a summary of the Sarbanes-Oxley sections:
From Insight, the Magazine of the | ||||||||||||||||||||||||||||||
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