Sarbanes-Oxley is Paying Off for Companies Despite Increased Costs and Hours, Protiviti Survey Finds

MENLO PARK, Calif., June 2, 2016 /PRNewswire/ -- According to Protiviti's 2016 Sarbanes-Oxley Compliance Survey, companies continue to invest more time and money in their Sarbanes-Oxley (SOX) compliance activities, driven by forces that include organizations that are changing and growing and increased regulatory scrutiny. With this continued investment, however, companies are reaping notable benefits from their compliance efforts through improved internal control structures and business processes, which in turn have positive ripple effects throughout the organization as a whole.

The survey report, Understanding the Costs and Benefits of SOX Compliance, which was released today, culled data from more than 1,500 respondents who participated in the survey during the first quarter of 2016. The extensive report provides a detailed look into the wide array of SOX costs and hours across different sizes and types of companies, and explores how factors such as industry, category (public vs. private), maturity and size of the organization, along with its SOX compliance progress and SOX filing status, affect average annual SOX compliance expenditures.

"With the amount of time and money invested in Sarbanes-Oxley compliance on the upswing, we're pleased to see the growing investment is paying off, with more companies reporting better and more streamlined internal control structures and business processes," said Brian Christensen, executive vice president with Protiviti and leader of the firm's global Internal Audit and Financial Advisory practice. "Companies understandably would prefer to spend less time and money on their compliance efforts, but the Sarbanes-Oxley Act was created to improve the quality and reliability of internal control over financial reporting structures in organizations. We're excited to see that this intention is already actualized in many of the companies surveyed."

Not surprisingly, the largest companies (annual revenues of $20 billion or more) spend the most on their internal SOX compliance costs (which, for the purposes of this study, include fees for third-party co-sourced or outsourced providers, but exclude external auditor fees). Below that level, however, compliance costs are relatively consistent until annual revenues drop below $500 million:

Similarly, companies responding to the Protiviti survey said the number of hours they devoted to SOX compliance increased in fiscal 2015 as summarized below:

Many respondents reported that their SOX compliance efforts have brought about positive effects to their organization. Among the companies with mature SOX compliance processes, two out of three believe there have been significant or moderate improvements to the internal controls associated with their financial reporting structures. Perhaps most important, however, is that organizations are leveraging their SOX compliance efforts to drive continuous improvement of their business processes, illustrating the lasting beneficial implications of this effort.

"More and more are realizing that if they approach their compliance processes in the right way, employing proven best practices such as automating more of their key controls, there will be positive ripple effects throughout their organizations," said Christensen.

Webinar and Other Resources Available
Protiviti will conduct a complimentary webinar about the survey results on June 9, from 10:00-11:30 a.m. PDT. Moderated by Christensen, speakers will include Julie Cochrane Meyer, senior VP and chief audit executive, Marriott Vacations Worldwide, along with Protiviti Managing Directors Terry Hertzog and Nichole Minice and Director Edna Lopez. CPE credits (1.5) will be given to qualifying participants for this 90-minute webinar.

The survey report, Understanding the Costs and Benefits of SOX Compliance, along with an infographic, a video and a podcast featuring Christensen sharing insights about the survey data are available for complimentary download at www.protiviti.com/soxsurvey.

About Protiviti Inc.
Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit, and has served more than 60 percent of Fortune 1000^® and 35 percent of Fortune Global 500^® companies. Protiviti and its independently owned Member Firms serve clients through a network of more than 70 locations in over 20 countries. The firm also works with smaller, growing companies, including those looking to go public, as well as with government agencies.

Ranked 57 on the 2016 Fortune 100 Best Companies to Work For^® list, Protiviti is a wholly owned subsidiary of Robert Half RHI. Founded in 1948, Robert Half is a member of the S&P 500 index.

Protiviti is an Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

Editor's note: Infographic and photo available upon request.

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SOURCE Protiviti