Global

Sean Holohan, director of business risk at Protiviti UK

Counting the cost of quality: Why companies not required to comply with SOX are still seeking to improve their internal controls

Since the conception of the Sarbanes-Oxley Act, little has been said of its benefits, with the focus of both the board and the business media falling almost exclusively on the costs of compliance. The mounting costs of becoming Sarbanes-Oxley (SOX) compliant continue to receive substantial attention: Financial Executives International reported that SOX year one total compliance costs were nearly 2.3 times original estimates. Many expect year two compliance costs to decrease. Sean Holohan, director of business risk at Protiviti, explains why companies that are not required to comply with these regulations are taking on these costs in a bid to improve their internal controls.