Sarbox costs plummet by 23%

Sarbox costs plummet by 23%

US corporates shave a significant amount off Sarbanes-Oxley compliance costs for the second consecutive year    

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%.

Further reading:

Republican attempt to limit Sarbox
felled
 

Sarbox scam reported to SEC 

SEC meeting to discuss Sarbanes-Oxley
changes
 

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource