{"id":600,"date":"2008-06-13T07:00:32","date_gmt":"2008-06-13T15:00:32","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=600"},"modified":"2008-06-13T07:00:32","modified_gmt":"2008-06-13T15:00:32","slug":"compliance-pain-easing","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/compliance-pain-easing\/","title":{"rendered":"Compliance: Pain Easing?"},"content":{"rendered":"<p>The first three years after the enactment of Sarbanes-Oxley were painful and expensive ones, but the pain seems to be easing.  Grappling with what it all meant and paying to build the infrastructure to support the requirements wasn&#8217;t easy in the early going.<\/p>\n<p>Over the last year though, SOX costs are down or flat and companies have moved on to other more pressing problems.<\/p>\n<p><a target=\"_blank\" title=\"SOX costs down\" href=\"http:\/\/www.earthtimes.org\/articles\/show\/fei-survey-average-2007-sox-compliance-cost-17-million,372984.shtml\">Financial Executives International compared<\/a> SOX costs over the past four years and found that for companies with over $75 million in capitalization that SOX costs in 2007 related to section 404 averaged  $1.7 million.<\/p>\n<p>Costs declined in the following areas:<\/p>\n<ul>\n<li>The number of staff work hours spent achieving compliance declined 8.6 percent from 2006<\/li>\n<li>The number of hours from external workers declined 13.7 percent<\/li>\n<li>Audit fees, which account for nearly a quarter of SOX compliance costs, dropped 5.4 percent<\/li>\n<\/ul>\n<p>Those companies using centralized accounting are seeing the greatest savings &#8212; more than 30 percent cost efficient as compared to operations with decentralized management.<\/p>\n<p>And many companies are beginning to see the benefits of achieving compliance:<\/p>\n<ul>\n<li>50.3 percent say that their accounting is more accurate<\/li>\n<li>50.6 percent say that their accounting is more reliable<\/li>\n<li>43.6 percent say that SOX is helping them to prevent fraud<\/li>\n<li>69.1 percent say that the measures have increased investor confidence in their operations<\/li>\n<\/ul>\n<p>So while SOX still presents a barrier to companies faced with the challenge of achieving compliance, once the controls are in place, additional SOX accounting costs tend to decrease as compliance begins to become second nature.  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Grappling with what it all meant and paying to build the infrastructure to support the requirements wasn&#8217;t easy in<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/compliance-pain-easing\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,30],"tags":[],"class_list":["post-600","post","type-post","status-publish","format-standard","hentry","category-compliance","category-sarbanes-oxley"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=600"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/600\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}