Despite its cost, The Sarbanes-Oxley Act continues to achieve its objective: bolster corporate integrity and investor confidence in U.S. public markets. The 2006 Oversight Systems Financial Executive Report on Sarbanes-Oxley surveyed 261 financial executives and identified growing benefits of SOX compliance. The findings show an across-the-board increase in the benefits that respondents experienced in 2005 from SOX compliance as compared to those reported in 2004. The greatest increases were found in SOX’s ability to improve the accuracy of financial reports, up to 47 percent from 27 percent in 2004, and the ensured individual accountability in financial reports resulting from SOX, up to 65 percent from 46 percent in 2004 (see:Burgeoning Benefits).
“Corporate fraud and inaccurate financial reporting drove the creation of Sarbanes-Oxley, and it’s clear that the medicine is addressing the disease it was intended to fight,” said Dana Hermanson, Dinos Eminent Scholar Chair of Private Enterprise at Kennesaw State University.
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