Sarbox 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.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource