When the first year for compliance with Section 404 of the Sarbanes-Oxley Act was completed, many senior executives reflected at length on the demanding effort that was required. Apart from the sizeable commitment of financial resources, the effort to comply with Section 404 and other key sections of the Act required the time and attention of numerous employees, many of whom were asked to delay work on other projects to meet compliance requirements.
As companies are involved in year two and the years of compliance ahead, they recognize that the intense, costly, project-oriented focus that prevailed in year one is likely inappropriate and unsustainable over time. At the same time, many of them acknowledge that the intensity of their organization's focus on the issue is likely to diminish once deadlines pass and new priorities emerge.
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