Resources for Sarbanes-Oxley (SOX)
Debate: The impact of IFRS on Sarbanes-Oxley
A bit of a debate has broken out about International Financial Reporting Standards (IFRS) and Sarbanes-Oxley. You won't hear about it on "Good Morning America" or anything, but in the industry, it is an issue.
On one hand, there are those who doubt that the coming of IFRS will have a deep on impact on Sarbox controls. Says Kevin Roberts, VP of Business Development at CODA Financials, "Some people seem to believe that the arrival of IFRS will conflict with SOX controls and generate huge amounts of work around changing processes. They are wrong! From CODA's experience in the UK and Europe, where IFRS is already in place, this new regulation will require minimal process changes."
One could certainly argue that the controls check the processes that create the financial data that end up being reported. They will still do that. The resulting data will merely be repurposed for IFRS.
But not so fast says D.J. Gannon, Partner at Deloitte & Touche, who maintains, "A shift to a judgment-based framework, such as IFRS, requires that not only the accounting policies, but also the internal processes and controls be adjusted."
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