Firms Desperate for Sarbanes-Oxley Expertise
Demand for experienced accountants has skyrocketed thanks to an increase in corporate governance regulations, particularly Sarbanes-Oxley. Although technology has simplified communication, business and tax issues have become increasingly complex. In the current environment of increased scrutiny and risk, companies must be prepared to support tax provision computations, positions, tax reserves, and disclosures. But as greater resource demands are being placed on already strained tax departments, shortages of qualified accountants are plaguing companies.
Executive search firm, A.E. Feldman, says accounting jobs are opening up for candidates with expertise in Sarbanes-Oxley. The recruiting firm also notes that the need for experienced and talented professionals with internal audit skills is high and should remain strong for the foreseeable future.
Efforts to comply with Sarbanes-Oxley have suffered due to a shortage of skilled accountants, according to the New Jersey Society of Certified Public Accountants. According to a recent Compliance Week study of 400 public companies, “personnel” topped the list of problems associated with SOX compliance. More than 40% noted weaknesses due to insufficient staffing, poor training, segregation of duties and other related issues.
The Sarbanes-Oxley Act of 2002 was Capitol Hill’s response to the accounting scandals that erupted at Enron, WorldCom and a slew of other companies beginning in 2001. The legislation establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms.
Since its enactment, Sarbanes-Oxley has also significantly increased the demand for accounting services. The legislation put new constraints on Big Four companies that sold both consulting and auditing services to clients. As a result, external audits now take up to 60% more time to complete, according to the WSJ.
SOX also reminded firms of the importance and strategic benefit of good accounting and financial controls and placed tremendous pressure on them to recruit the best talent. In fact, the number of accounting jobs nationwide is expected to grow faster than the average expected growth for all jobs through 2014, according to the U.S. Department of Labor.
