Financial Accounting Blog

Tuesday, February 10, 2004

Wall Street Journal,Feb. 10 2004 Companies complain about the cost of Sarbanes- Oxley.
Changes made by Sarbanes-Oxley to toughen corporate accountability and restore investor confidence are just now starting to hit the bottom line. The increased cost to bring off balance sheet items on the books and improve audit compliance is costing large corporations up to 4.5 million dollars. Much of the money is being spent on consultants, lawyers, auditors and new software.
Audit costs are doubling and final rules on how to asses the new controls is still not published. Many controllers feel the pendulum has swung to far and this is overkill.