Financial Executive Report on Sarbanes-Oxley

79% of Financial Execs Report Stronger Internal Controls

Despite the high costs of compliance, most financial executives (57 percent) describe their company's Sarbanes-Oxley compliance as a good investment for stockholders, and 79 percent say they have stronger internal controls after complying with the Enron-inspired law, according to the 2004 Oversight Systems Financial Executive Report On Sarbanes-Oxley Compliance.

"Financial executives can justifiably complain about the costs and difficulty of complying with Sarbanes-Oxley, but even this group tells you they have stronger internal controls because of the law," said Dr. Dana Hermanson, a professor of accounting and co-founder of the Corporate Governance Center at Kennesaw State University. Hermanson is also an advisor to Oversight Systems. "The medicine was tough to take, but we see direct benefits to the company and shareholders. This is powerful validation of the legislation."

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