The Sarbanes-Oxley Act: Deterrent or Aid to Finance and Accounting Outsourcing?

The Sarbanes-Oxley Act has had a significant impact on the accounting profession since its enactment in 2002. Compliance costs have increased and the nature of the internal audit function has changed somewhat to accommodate the requirements of the Act. This article examines the effect the Sarbanes-Oxley Act has had on the outsourcing of accounting services and data control and security issues that result from outsourcing accounting services. The authors report on interviews conducted of outsource company executives in India, focusing on data security concerns and financial controls.