WASHINGTON--A growing number of firms have completed the transition to life under the Sarbanes-Oxley Act, the federal law governing financial disclosures and accounting, according to a survey released yesterday.

The study was conducted by New York-based Protiviti Inc. insurance consulting and audit firm, a subsidiary of Robert Half International Inc., Pleasanton, Calif.

It found that last year more than twice as many companies achieved a "rebalancing" in their internal audit departments, allowing them to refocus on traditional duties rather than being consumed with Sarbanes-Oxley compliance, compared with the number of firms in a 2005 survey.

However, the survey also found that the number of companies achieving the new balance remains a sharp minority at 24 percent in 2006. Protiviti's second Internal Audit Rebalancing study was conducted from October 2006 through January 2007, when the first firms affected by Sarbanes-Oxley were in their third year of compliance.

That factor may play a role in the low number of firms that had achieved rebalancing, as the survey found many considered year three of compliance as a turning point.

"Perspective is everything," said Bob Hirth, managing director for Protiviti and head of the company's global internal audit practice. "By the third year, organizations have a better understanding of what does and does not work with their Sarbanes-Oxley compliance efforts, and internal auditors have adapted to increased workloads and responsibilities. They have a deeper understanding of the regulations and view compliance as a long-term process instead of a short-term project."

For nearly half of those who participated in the survey, returning to their traditional focus was also considered the greatest benefit of achieving rebalancing.

"Being able to perform more traditional audits" was listed as the top benefit of rebalancing by 47 percent of respondents.

"This is a strong indicator that after more than three years of Sarbanes-Oxley compliance, internal auditors are ready for--and recognize a need for--the internal audit function to get back to basics," according to the report.

In general, Mr. Hirth said progress has not been swift for companies achieving rebalancing, but he noted that companies are working toward the goal.

"This process of rebalancing is tied closely to the development of a more efficient and sustainable approach to compliance, which is why it takes time to achieve.

"However, as the results of our second rebalancing survey indicate, significant progress has been made. Companies clearly are seeing the long-term benefits of rebalancing, which include ensuring they do not focus solely on financial reporting at the expense of other critical business operations and functions," he said.