Auditing

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AUDITING
Eighty percent of investors have confidence in the audited financial information provided by public companies, according to a survey of investor sentiment. A national survey of 1,001 investors conducted by Glover Park Group for the Center for Audit Quality explored opinions about the Sarbanes-Oxley Act, the strength of the U.S. capital markets and the impact of SOX on investor confidence.

The majority of investors (56%) said SOX was a good idea; 5% said it was a bad idea; and 30% said SOX made no difference.

Other findings included:

n 62% of those surveyed said rules mandated by SOX should be left fundamentally as they are, and two-thirds would be concerned by any easing of the rules.

n 79% said the requirement to establish independent audit committees has been effective.

n 76% said external auditors’ reporting to independent board-based audit committees has had a positive impact.

n 76% said the requirement for companies to evaluate and disclose their internal controls and for external auditors to attest such disclosures has been positive. The survey and a summary of its findings are available at www.thecaq.org.