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Accountancy Slice
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IIA urges Congress to modernize Sarbanes-Oxley with greater focus on internal audit

The Institute of Internal Auditors (IIA) is calling on U.S. lawmakers to update the Sarbanes-Oxley Act (SOX) to better reflect the role of internal auditing in corporate governance and compliance. In a new position paper, the IIA argues that while SOX has been central to financial reporting integrity since 2002, it does not explicitly recognize internal audit functions. The group recommends clarifying the definition and role of internal auditing in law, strengthening coordination between internal and external auditors, and reassessing compliance requirements under key SOX provisions. It also suggests leveraging technology and internal audit capabilities to reduce compliance costs. The proposal comes amid renewed political interest in reviewing SOX, and aims to improve efficiency while maintaining strong investor protections as the risk environment evolves.

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