May
02
Average compliance with Sarbanes-Oxley has now hit $1.7 million for big companies with average annual revenues of $4.7 billion. And while compliance costs are actually slipping, that hasn't stopped auditors from cashing in big time.
According to the latest Financial Executives International survey, Section 404 compliance was $1.7 million and 404 auditor costs have also declined 5.4 per cent with the scope of work narrowing. But there's been a reported five percent increase in the average hourly audit rate charged by auditors.
So while the compliance costs are headed down, and companies are reporting more confidence in Section 404, the trend with audit fees is a worrying sign.
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