August 16, 2004
Time Shrinking, Costs Rising
The time to get Sarbanes-Oxley projects well on their way to completion is on every CFO's mind. Since the legislation was first passed in August of 2002, many changes have been made. In March of 2004, the PCAOB made some pronouncements that helped define how Section 404 review should be undertaken.
An interesting article gives some insight on costs rising on Section 404 reviews...
In July 2004, FEI surveyed 224 public companies with average revenues of $2.5 billion to gauge Section 404 compliance cost estimates. Results showed the total cost of compliance is now estimated at $3.14 million*, or 62% more than the $1.93 million estimate identified in FEI's January 2004 survey. The companies surveyed expect to pay their auditors $823,200 in fees for attestation of their internal controls, in addition to the annual audit fees. This compares to the $590,100 companies expected auditors would charge for attestation in January 2004. The survey was conducted the week of July 19, and distributed to 3,088 companies, and drew a response rate of 13.8 percent.
Accountingweb has the complete article.
For more about Issues Central, see www.issuescentral.com
An interesting article gives some insight on costs rising on Section 404 reviews...
In July 2004, FEI surveyed 224 public companies with average revenues of $2.5 billion to gauge Section 404 compliance cost estimates. Results showed the total cost of compliance is now estimated at $3.14 million*, or 62% more than the $1.93 million estimate identified in FEI's January 2004 survey. The companies surveyed expect to pay their auditors $823,200 in fees for attestation of their internal controls, in addition to the annual audit fees. This compares to the $590,100 companies expected auditors would charge for attestation in January 2004. The survey was conducted the week of July 19, and distributed to 3,088 companies, and drew a response rate of 13.8 percent.
Accountingweb has the complete article.
For more about Issues Central, see www.issuescentral.com
