Companies reported across-the-board benefits in 2005 from Sarbanes-Oxley compliance as compared to 2004, according to a new report from Oversight Systems Inc.
The survey found reported increases for SOX compliance benefits, including reduced errors in financial operations, up to 48 percent from 31 percent in 2004; empowered board audit committees through increased information, up to 40 percent from 25 percent in 2004; decreased risk of financial fraud, up to 40 percent from 33 percent in 2004; and strengthened investors' view of the company, up to 26 percent from 20 percent in 2004.
However, the increased benefits companies are experiencing do not come without their cost. In 2004, 42 percent of financial executives reported that they expected to spend less than half of what they did as compared to year-one compliance costs. In reality, only 19 percent realized the expected savings on year-two costs.
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