Beyond Compliance : The Value of SOX

Many companies complying with the Sarbanes-Oxley Act (SOX) focus primarily on effective internal controls and reliable financial reporting. Addressing only these aspects, however, leaves most of the value on the table. By putting the spotlight on the broader definition of internal control, which includes effectiveness and efficiency of operations, evidence suggests that companies can make compliance with SOX, particularly Section 404, more of a value proposition. This article examines the additional value that public and nonpublic entities have extracted from compliance with SOX and SOX-related procedures