Commenting on the Free Enterprise Fund's lawsuit against the Public Company Accounting Oversight Board last week, chairman Mallory Factor told IT Business Edge just how awful the Sarbanes-Oxley Act of 2002 really is. Many in the U.S. agree with him, according to the wide array of committees and reports declaring the same.
Given that, we were surprised to come across a DNA report that 43 percent of the 125 finance chiefs who participated in the Ernst & Young India CFO Survey said that India should implement a Sarbanes-Oxley-like system of controls. Fifty-six percent say the benefit of compliance is worth the cost, and an even bigger majority doesn't see compliance as a burden, the survey found.
How is that possible, when all we hear in the U.S. is that the stringent reporting requirements have to go? Maybe regulation and reporting are such a way of life in Indian companies -- what with all the outsourcing contracts fulfilled there -- that one more set of regs won't make a bit of difference. Maybe company execs are, in fact, more comfortable with regulations than without.
Also interesting: Indian CFOs agree with the trend when it comes to accounting standards. E&Y says 64 percent of respondents favor aligning Indian standards with the International Financial Reporting Standards, or IFRS. The U.S. is also considering adopting IFRS.