Improving controls and their documentation seems to be the major result fast-growing private companies are getting from applying provisions of the 2002 Sarbanes-Oxley Act to their business, according to a PricewaterhouseCoopers (PwC) survey of CEOs of 341 privately-held product and services companies. Updated governance procedures and strengthened codes of conduct and ethics are the other major reported benefits.
Although the law does not require compliance by private firms, 30% of the CEOs surveyed say that the legislation, designed to improve corporate governance and disclosure, has had an impact on their companies during the past year or two -- or will in the near future. Technology companies are particularly focused on improving their governance procedures and strengthening codes of conduct and ethics, PwC, reports.
The consulting firm says companies applying provisions of Sarbanes-Oxley regard them as a kind of best business practice and a way to head-off future or potential problems -- and not necessarily as a means of solving current problems.
The companies surveyed range from about $5 million to $150 million in revenue or sales.