Sarbanes-Oxley compliance costs might have levelled off but other costs are increasing at a fierce rate, according to a survey released by lawyers Foley & Lardner.

Costs have gone up because of increases in audit and legal fees and a need to pay corporate directors more.

"It is important to note that the majority of cost savings experienced by public companies after their initial implementation of Section 404 are driven by increased internal efficiency reducing lost productivity. Nevertheless, out-of-pocket costs associated with Sarbanes-
Oxley Act compliance continue to increase."

Significantly, the study confirms that Sarbanes-Oxley has had a disproportionate impact on smaller companies. Between 2001 and 2006, audit fees at smaller companies rose 311 per cent, compared with 189 per cent for the S&P 500.

And while compliance costs have plateaued, the study shows they are triple what they were in 2001.