RSS feedsCosts of company inspections continue to be high, a US accounting watchdog has said, because the inspections, required by the Sarbanes-Oxley Act, are not as efficient as they could be.
Chairman of the Public Company Accounting Oversight Board, Mark Olson, said the board was 'not sure that the efficiencies have been fully implemented' a year after issuing the guidelines, the Financial Times reported.
Auditing firms around the world complained bitterly after the Act was passed, because it resulted required an external auditor to check executives' own internal controls, resulting in significantly extra workloads.
Guidance from the PCAOB was criticised for being 'vague' over the matter.
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