Failed Sarbox tests cost UK companies £1m
Dual listed companies falling at first hurdle at alarming rates.
UK companies listed in America will have to pay, on average, more than £1m to correct mistakes made when trying to comply with Sarbanes-Oxley.
Link: In-depth: Sarbanes-Oxley
Research from risk consulting company Protiviti shows that about 43% of controls put in place by companies to meet Sarbanes-Oxley requirements are deemed non-compliant on first testing. The research claims the cost of retesting is estimated at £600,000, with the bill rising past £1m per company once new controls have been put in place.
Manufacturers fared the worst, with failure rates of over 50%, while financial services companies performed best, with an average control failure of just 10%.