Stephen Taub, CFO.com | US
June 20, 2008

Point Taken

Mr. Benoit's comment regarding the compliance cost for Sarbox 404(b) cited in the Lord & Benoit study is correct. We've adjusted the article to reflect the study's findings, and provided a link to the study in the article.

Posted by Marie Leone | Jun 23, 2008 7:24 AM ET

Cost Studies of Sections 404(a) and (b)

The comment above about the "Lord & Benoit Report: The Sarbanes Oxley Investment" was not properly stated. It did include a cost study of BOTH Sections 404(a) and 404(b).

And it was credible. The report was embraced worldwide including two articles by CFO.com and approximately 40 other trade, legal and professional journals and several influential governing bodies.

The data was compiled in part with actual companies for which we provide services.

The CFO article called "An Answer to the $91,000 Question" shows the actual details: the average cost of complying with Section 404(a) was $53,724; the average projected cost of complying with Section 404(b) Auditor Attestations was $24,750. Tt is also important to note that the $91,000 SEC quote was NOT BOTH 404(a) and (b), but was just Section 404(a).

Of course how can we really predict these costs (even if the SEC's research company tries to guess) until the market requires a fee quote in 2009?

For those interested in reading the complete report, which is available free of charge, which also breaks out the costs by industry, please see www.section404.org.

Posted by Bob Benoit | Jun 20, 2008 6:30 PM ET