The provisions of the Sarbanes-Oxley Act have created the Public Company Accounting Oversight Board to supervise the activities of the auditing profession. The objectives of the act are to enhance corporate responsibility and financial disclosures and to combat corporate and accounting fraud among public companies. The act will go a long way toward reforming American business practices.
The act also requires periodic financial reports to be more transparent when it comes to reporting off-balance sheet liabilities, obligations, and transactions. Annual reports must also publish information on the scope and adequacy of the internal control structures and procedures of companies' financial reporting. Accounting firms are required to attest to and report on their assessments of the effectiveness of companies' internal control structures and procedures for financial reporting.
Sarbanes-Oxley has created a large number of accounting jobs, especially for those who have learned the new accounting rules and procedures. The tightening of auditing rules because of the act has also led to the creation of many auditing jobs in companies for both internal auditors and external auditors recruited to provide unbiased reports.
Any medium or large company, public or private, must meet the compliance standards established by the Sarbanes-Oxley Act. The number of reports to be filed with the Securities and Exchange Commission and other regulators has increased. Companies recruit compliance officers whose job is to ensure timely compliance. With increased compliance requirements, the compliance officer's job has become more demanding because companies must file so many reports with the Securities and Exchange Commission.
The Sarbanes-Oxley Act came at a time when it seemed that accountants were facing a bleak future because of scandals, but it has created a new, sustained demand for accountants. The kinds of jobs that have been created because of the act include auditing jobs, internal auditor jobs, cost accountant jobs, and accountant jobs.
Findings of a recent salary survey show that experienced accounting and finance professionals who can help businesses expand and those who are well versed in compliance work are the most sought-after professionals. This group of professionals, which includes internal auditors, financial analysts, and public accountants, will see the largest salary increases.
According to the survey, in the area of public accounting, experienced managers and directors in large firms as well as small and medium-sized firms can look forward to pay increases. Professionals just entering the field also have a reason to cheer, as entry-level salaries are set to increase regardless of firm size.
With a shortage of qualified accounting professionals in the job market and growing demand for their skills, companies will resort to recruiting and luring professionals with higher salaries, bonuses, and better work-life balance options.
