Comment on this Article

404 Costs to Drop, Big Four Maintain After ''start-up and one-time factors'' are accounted for, say the firms, the total cost of complying with the thorny Sarbox provision should fall about 40 percent for companies both large and small.

Stephen Taub, CFO.com | US
December 9, 2005

SOX Cost

While the cost are most likely coming down, I find the percentages hard to believe. We did a thorough plan with our auditors using their "rules" around testing. We determined that the cost should be 35% less than the prior year. However, because the number was greater than a 20% drop, they had to get approval from their National Office. In addition, our audit committee approved a range of fees for this service. As we approach year-end they are coming in at the higher end of the range and this is less than a 20% drop in fees. Theys till spend an inordinate amount of time testing things that are not of "risk" to the Company but per their National Office checklist - particularly in the General Computer Control area. We have 750 Million in capitalization. My experience is telling me that the firms are telling Mr. Cox what he wants to hear and is not based on fact.

Posted by Ann Marie Hunker | Dec 12, 2005 8:46 AM ET