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Sarbanes-Oxley: The Real Cost of Compliance
What exactly does it cost a company to comply with Sarbanes-Oxley? Especially for small companies, the costs have been fuzzy. The SEC had estimated that small company compliance costs $91,000.
A new report now finds that the SEC number wasn’t too far off. In fact, the average cost that small companies are paying is actually about 14 percent less than whan the SEC estimated — $78,474. The number appears in a report by Lord & Benoit that surveyed 29 companies representing a cross-section of industries that include semiconductor, manufacturing, distribution, banking and finance, real
estate, food and beverage, transportation, mining, software, energy, services, and biotech. The report also incorporated informaton from an Audit Analytics study which examined the actual audit fees reported by 5,500 public companies.
The report noted that the costs of compliance are not without benefits. They noted that the volatility in reporting has decreased. The number of security class action claims has also decreased significantly since the introduction of Sarbanes-Oxley.
