Optimising financial processes

Posted on:

Something to Consider: State of SOX/Internal Controls Survey Results

Something to Consider March 2020 1

Sarbanes Oxley has survived adolescence and is now 18 years old, an adult by most definitions. But as with adults, young and old, there are plenty of opportunities to improve! Here we have picked out some interesting findings from the latest SOX/Internal Controls Survey.​

1) The overall cost of SOX and internal controls compliance continues to increase. 49% of survey respondents report an increase in SOX/IC compliance costs compared with 13% who report a decrease.

2) Internal audit’s involvement in SOX and internal controls has expanded. Almost1/3 of survey respondents report that internal audit spends more than half its time on SOX.

3) Interest in and use of advanced technology has increased. The use of data analytics doubled to 21% from 10% last year.

4) Cybersecurity and IT controls lead the list of priorities. 48% of survey respondents reported identifying more than 25 control deficiencies, compared with just 2% who found 0. Almost 1/3 of survey respondents report more than $1 million in cumulative dollar impact as a result of control deficiencies.

5) The root causes of control failure are unchanged from the results reported in previous surveys. Improperly performed, enforced, or monitored controls is the leading source of control failure according to 86% of survey respondents. Human error is identified by 61% of survey respondents, and poorly designed controls is cited by 49% as the source of control failure.

You can find the full results of the survey here

If you are unable to join the live session, please register as normal and you will receive a copy of the slides post-event.
Our ‘Something To Consider’ snippets are framed as small, digestible, ‘dashes of insight’ around the pillars of what we define as “World Class Finance” – Process Optimization, Financial Control and Compliance, and Risk Assurance, all underpinned by technology enablement and integration.