Sarbanes-Oxley hits US companies in pocket
The implementation of Sarbanes-Oxley is resulting in soaring costs for medium-sized US businesses, according to a new report.
The study of 450 companies showed that audit fees for groups with a market capitalisation of around $1bn rose by 35% during the year. In addition compensation for directors had increased 10% while insurance for these director has in some cases more than doubled.
The report by Foley & Lardner and KRC Research blamed the rising costs on the new corporate governance laws and on greater demands from the market to ensure financial statements are entirely sound.