Sarbanes-Oxley cost less to implement in 2006 than in
the previous two years, but the cost to comply with the
financial accountability law isn’t worth the effort, according
to a survey of 200 financial executives.
The survey, by Financial Executives International,
credited “increased efficiencies, a positive learning curve,
and technical systems and software rollouts” for an average
23 percent decrease in the costs of complying with
Sarbanes-Oxley Section 404. That section of the law requires
each company’s annual report to contain a statement saying
that management is responsible for adequate internal
controls and financial reporting, and an assessment of the
effectiveness of those financial controls.
Michael P. Cangemi, FEI president and CEO, noted in a
statement that companies are doing well at becoming more
efficient, spending less time and reducing costs to comply with
Sarbanes-Oxley, but auditors’ fees “are virtually unchanged”
over the past three years. The group, whose 15,000 members
include CFOs, treasurers and controllers, hopes for regulators
to find ways to help companies reduce those costs, Cangemi
said. See the statement here.
The survey of 200 companies, a group that had average
revenues of $6.8 billion, found that those with centralized
financial operations had much lower costs for complying with