SOX: The Evolution of Corporate Reporting

Wednesday, July 27, 2022

Signed into law on July 30, 2002, the Sarbanes-Oxley Act established a framework to protect institutional and hardworking individual investors alike by improving the accuracy and reliability of the information that drives investments in our capital markets. To mark the 20th anniversary of this landmark legislation, the Center for Audit Quality and Capitol Account hosted SOX: The Evolution of Corporate Reporting, featuring remarks from SEC Chair Gary Gensler and a robust discussion with CAQ CEO Julie Bell Lindsay and Deloitte US CEO Joe Ucuzoglu. 

Here are our top five takeaways:  

  1. Sarbanes-Oxley has had a positive impact on audit quality. As Chair Gensler said “The quality of publicly company audits has improved.” 
  2. Diversity and inclusion are the future. It is critical to the work of public company auditors that the profession better reflect the demographics of the broader population. Collective efforts like Accounting+ and Bold Ambition will be critical to bringing in the next generation of auditors.  
  3. Critical auditing standards updates. In May of this year the PCAOB announced plans to update most of its interim standards that were adopted when it was created. Chair Gensler cited this as a key area of focus for him. 
  4. Public company auditors are prepared. As investors call for new data in corporate reporting, the expertise of independent public company auditors is applicable to emerging areas such as ESG and cybersecurity. 
  5. An emphasis on enforcement. Keeping in mind investor protection, the SEC and PCAOB will bring a greater focus on investigations and enforcement actions. 

Watch the full rebroadcast below.