Are some companies pretending to be compliant with internal controls?
Many companies are jumping through the hoops, hoping it costs them as little as possible. A number of companies worked so hard to meet this year’s compliance deadline that they didn’t think completely about having to do it again, hopefully less painfully, for the foreseeable future. Other companies have focused on appearing compliant instead of being compliant. They follow the letter rather than the spirit of the law. Sarbanes-Oxley includes some requirements for boards of directors. Does the current environment under Sarbanes-Oxley encourage boards of directors to be more vigilant and to ask tougher questions? Yes, some boards are concerned with the current environment and want to be sure they are informed. They are concerned about the firm that they are a board member for, as well as for their personal reputation. But many directors are not concerned. Few directors see themselves as being on boards of firms with massive frauds. Many are comfortable or friendly with the chief executiv
