Our good friends at Compliance Week have announced some interesting results in their annual study on material weaknesses in financial reporting. The study looked at 2007 financial information from over 400 companies of the S&P 500. The report found a significant drop in the number of weaknesses reported in 2007 in comparison with 2006, with 14 weaknesses reported by 11 companies. The publication’s previous study in 2006 found that almost every company selected for the study reported at least one material weaknesses, bringing the group’s reported total to more than 800.
Editor in Chief of Compliance Week Matt Kelly credits SOX as the perpetuator of progress:
“After four years of hard learning and experience, we’re seeing proof that Sarbanes-Oxley does deliver benefits,” said Kelly. “This is Corporate America’s equivalent of going to the gym: a painful experience at first, but eventually that pain fades and your health improves enormously over the long haul.”
See full Article.
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