PricewaterhouseCoopers today underscored the positive impact the Sarbanes-Oxley Act has had on the capital markets and investors confidence. PwC Global CEO Samuel A. DiPiazza, Jr., who participated in the SEC's April 13th Roundtable on Section 404, said: "The Act brought about three important improvements for the capital markets:
"First, it fundamentally created a shift in governance from the executive suite to the board room. Directors, particularly those serving on audit committees, are much more engaged, knowledgeable and empowered to act on behalf of investors.
"The auditing profession now has independent oversight, a change with far-reaching implications as audit firms are subject to independent inspections and rule-making.
"Third, there has been a significant increase in the transparency of financial reporting due in large part to Section 404. These important changes are only beginning to be realized and I am confident that they will continue."
In its written submission to the SEC, PwC also pointed out that the Sarbanes-Oxley Act helps lower inherent risk in the
US capital markets, enhancing investor confidence and resulting in more efficient allocation of capital.
While cost of compliance with Section 404 was a central theme during the roundtable, PwC's participants reinforced that more time was needed to gather and fully evaluate the data in order to accurately reflect the benefits of enhanced internal controls.