Continuous monitoring, auditing needed for Sarbanes-Oxley.

• Author: Heffes, Ellen M.
• Position: Financial Reporting - Sarbanes-Oxley Section 404

Despite an extension in the deadline from June 15 to Nov. 15, 2004, half of large U.S. companies polled are still less than 60 percent complete in meeting their Sarbanes-Oxley Section 404 filing requirements. This is a key finding of a survey conducted by ACL Services Ltd. and the Center for Continuous Auditing (CCA).

The poll of 248 senior audit professionals at corporations with more than $1 billion in revenues reports considerable challenges meeting the filing requirements. And, despite recognizing the need for continuous auditing and monitoring, many seem to be taking a short-term approach to compliance.

The survey found that 67 percent of respondents have no annual budget allocated to maintain Section 404 compliance after the initial filing requirement, and one quarter are only mildly confident or not confident at all in their company's ability to maintain Section 404 compliance after the first filing deadline.

"The results of this survey reflect the concerns we have been hearing from the audit community," says Harald Will, president and CEO of ACL Services, a provider of business assurance analytics technology for audit and controls professionals.

Will went on...