Financial Crime World

VIET NAM Firms Struggle with Sarbanes-Oxley Compliance Requirements: Expert Says Change Needed to Avoid Costly Delays

Achieving Sarbanes-Oxley (SOX) compliance has proven to be a daunting task for many Vietnamese companies. The process often involves tedious and time-consuming procedures, which can overwhelm even the most seasoned organizations.

Complexity of SOX Compliance

According to industry experts, SOX compliance demands input from:

  • External auditors
  • Internal control owners
  • Technology and document management
  • Targeted testing
  • Tailored reporting

This complex process requires a high level of coordination and attention to detail, making it challenging for many local firms to achieve.

Outdated Methods Lead to Inaccurate Reporting

Despite the challenges, many Vietnamese companies are still relying on outdated methods such as:

  • Spreadsheets
  • Email

to facilitate these critical processes. As a result, some companies may inadvertently test the wrong controls, potentially missing material weaknesses and putting their entire ICOFR (Internal Controls Over Financial Reporting) environment at risk.

The Consequences of Inadequate Compliance

Experts warn that the level of effort and cost required to achieve SOX compliance can reach staggering levels. Companies that fail to comply with SOX regulations may face:

  • Costly delays
  • Disruptions to daily operations
  • Potential legal consequences

A Streamlined Approach is Needed

“We understand the challenges that come with achieving SOX compliance,” said an industry expert. “However, the importance of maintaining a strong ICOFR environment cannot be overstated. It is crucial for companies to invest in people, processes, and technology to deliver a quality program at a cost-effective price.”

Expert Guidance is Essential

With the stakes so high, it is imperative for Vietnamese businesses to rethink their approach to SOX compliance and seek expert guidance to ensure they are meeting regulatory requirements while minimizing disruptions to daily operations.

By adopting a more streamlined approach to SOX compliance, Vietnamese companies can avoid costly delays and ensure a strong ICOFR environment.