Monday, April 03, 2006
Audit fees, SOX still socking companies
The pain was supposed to subside for companies after the first year of the Sarbanes-Oxley Act, as business pundits predicted that investments in pricey technologies and accounting infrastructure would peter out after taking a big, one-time bite out of Corporate America's bottom line.
The pundits were wrong. A Boston Business Journal analysis of 27 public companies in Massachusetts shows their auditing costs spiked 26 percent last year, bringing their total increase to 103 percent since SOX became effective in 2004. In total, the group spent $56.6 million on SOX and related auditing costs last year, or around 2 percent of their 2005 operating income.
posted by Brian Moran @ 4:48 PM