Auditing costs still too high due to Sarbox
Auditing cost have not fallen as much as expected in the past year thanks to cost of Sarbanes-Oxley inspections
Costs of company inspections continue to be high, a US accounting watchdog
has said, because the inspections, required by the
Sarbanes-Oxley
Act, are not as efficient as they could be.
Chairman of the Public Company
Accounting Oversight Board, Mark Olson, said the board was ‘not sure that
the efficiencies have been fully implemented’ a year after issuing the
guidelines, the Financial Times reported.
Auditing firms around the world complained bitterly after the Act was passed,
because it resulted required an external auditor to check executives’ own
internal controls, resulting in significantly extra workloads.
Guidance from the PCAOB was criticised for being ‘vague’ over the matter.
Further reading:
Cheney
Expresses Doubts About Sarbanes-Oxley