Thursday, April 13, 2006
Sarbanes-Oxley effect now wearing off for auditors
When the Sarbanes-Oxley Act first reared its head in the wake of a rash of corporate scandals in the US, including Enron and WorldCom, it left many companies with quite a headache.
Auditors, however, must have been rubbing their hands with glee: more work in ensuring compliance with the new corporate governance laws meant higher fees after all.
The amount of non-audit work you could undertake with an audit client may have been restricted, but this loss of work could be picked up elsewhere, from other firms that also have to drop some services.
But the good times for auditors caused by the new rules now appear to be over, after a recent US study showed that audit fees have started to drop once again.
posted by Brian Moran @ 8:59 AM