PracticeAuditSarbox audit cost drop by nearly half

Sarbox audit cost drop by nearly half

Efficient processes now in place says consultancy

A report by an economic consulting firm in the US has revealed that audit
costs have dropped dramatically in the last year as companies put more efficient
processes in place.

The report by CRA International found that the average costs for 58 Fortune
1000 companies dropped 44% last year, to $4.8m (£2.7m), higher than the 42%
predicted by the consulting firm.

Gregory Bell, a group vice president at CRA International, said the biggest
reason for the decline was the learning curve effect. ‘This is their second year
working under Sarbanes-Oxley, so it makes sense [public companies] realized
significant efficiencies from handling it the second time around.’

The study also found that the 66 publicly traded companies surveyed (with
market capitalization between $75m (£42m) and $700m (£393m) saw a smaller
decrease in costs.

Compliance costs dropped 31%, to $860,000 (£483,000) last year against an
expected drop of 39%, WebCPA reported.

Related Articles

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

5d Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

6d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter