Sarbanes-Oxley costs soaring
Companies are not putting enough capital aside to address the costs of compliance with section 404 of the Sarbanes-Oxley Act, according to a new survey.
The research by Financial Executives International showed that compliance costs are over 60% higher than the estimates that were made just six months earlier. The average cost for a company in the survey rose from $1.93m in January to $3.14m in July.
The rises have resulted from a 109% increase in internal costs, a 42% rise in external costs and a 40% jump in auditor’s fees. Employees hours spent on Sarbanes-Oxley compliance have also risen from 12,265 to 25,667 over the last half year.