US corporates shave a significant amount off Sarbanes-Oxley compliance costs for the second consecutive year
Accountancy Age, 17 May 2007
The cost of complying with the controversial Sarbanes-Oxley regulations nosedived by almost a quarter last year for large US companies.
A survey of 200 companies commissioned by Financial Executives International showed that costs fell to $2.9m (£1.45m) in 2006 from just under $3.77m. The results focussed on US companies with at least $75m in annual revenue.
Most of the savings came from a 10% cut in internal hours and the fees paid to outside lawyers and consultants, the annual survey found. The first study in 2004 showed that companies had to weather average costs of $4.5m.
Hours put in by outside auditors also fell but their overall fees for certifying compliance with the corporate responsibility law fell less than 1%.
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