Audit squeeze
Filed in archive Accounting by leon on August 24, 2007
I have long maintained that Sarbanes-Oxley has been a licence to print money for accountants.
If you needed any further evidence, these findings from the Corporate Library reported here are further confirmation.
According to that piece of research, median fees earned by the world's top auditing firms shot up by 345 per cent in the five years to 2006. One of the big reasons is that the nature of the audit work has changed since Sarbox was brought in. Now, more attention is paid on compliance work and internal control testing. Extra work created by Sarbanes-Oxley.
The study also shows the oligopolistic power of the Big Four with PwC, Deloitte, KPMG and Ernst & Young having a stranglehold on 95 per cent of the big public companies.
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Mr Wong
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