Ongoing Reforms in the U.S. (cont'd 1)

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Ongoing Reforms in the U.S.

  • July 2004 marked the two-year anniversary of the passage of the Sarbanes-Oxley Act.

  • Benefits are being seen in the following areas:

    • enhanced public trust and confidence in the capital markets
    • transformation of many aspects of corporate governance
    • needed changes in auditor relationships with clients
    • more active and effective audit committees
    • increased CEO and CFO attention to financial reporting
    • internal control requirements providing beneficial results and adding value for many companies
    • PCAOB inspections of audit firms identifying areas where significant future improvements can be made in audit quality
    • entities not covered by the Act considering implementing similar practices