Audit costs drop in US
Effects of Sarbanes-Oxley begin to wain
Audit fees in the US, which rose sharply following the implementation of the
2002 Sarbanes-Oxley Act, have begun to fall, a report published in
Compliance Week has revealed.
Large public companies (revenue of more than $5bn) in their second year of
Sarbanes-Oxley compliance saw audit fees fall 0.6% in 2005, while overall, fees
paid to external auditors fell by 7.4%.
The drop in audit costs contradicted reports in the Wall Street
Journal which said that audit fees were still rising, albeit moderately.
‘The Big 4 predicted a decline like this, but few believed them,” said
Compliance Week managing editor Matt Kelly.