Thursday, June 22, 2006
Audit fees for Sarbanes-Oxley compliance keep rising
(Crain's) — Despite predictions that audit fees associated with the Sarbanes-Oxley Act would fall, the cost of corporate governance compliance continues to get more expensive for public companies.
Since federal accounting reforms were enacted in 2002, public companies with less than $1 billion in annual revenue have seen audit fees nearly triple in the past four years, according to a recent study by law firm Foley & Lardner. Audit fees were more than $1.2 million for fiscal year 2005 compared to $332,000 before accounting reforms.
In 2004, public companies with less than $1 billion in revenue spent slightly more than $1 million on audit fees, the study showed.
posted by Brian Moran @ 8:31 AM