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Sarbanes-Oxley Compliance Costing 39 percent More Than Expected

Sarbanes-Oxley Compliance Costing 39 percent More Than Expected

by Rick Turoczy on March 22, 2005

Public companies are paying about 39% more for complying with section 404 of the Sarbanes Oxley Act than they had expected, according to a survey by Financial Executives International (FEI). FEI found that year one section 404 costs came to an average of $4.36 million, compared with $3.14 million estimated in an FEI survey last July. FEI says the additional expense comes largely from a 66% jump in external costs for consulting, software and other vendors and a 58% increase in the external-auditor fees.The SOX compliance breakdown, says FEI, is an average $1.34 million for internal costs, $1.72 million for external costs and $1.30 million for auditor fees.In other findings, FEI says that 55% of companies polled believe that section 404 gives investors and other external audiences more confidence in a company’s financial reports, with that figure climbing to 83% of large companies with more than $25 billion in assets.

Sarbanes-Oxley Compliance Costing 39 percent More Than Expected

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