Law's Compliance Cost May Drop

Summary


A study commissioned by the "Big Four" accounting firms predicts a drop in the cost incurred by companies to have auditors sign off on their internal controls, a requirement of the Sarbanes-Oxley corporate governance law.

The study said the cost of complying with Section 404 of the law will decline 42 percent to an average of $4.3 million for large companies, and fall 39 percent to $900,000 for smaller companies in 2005, the provision's second year.

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Law's Compliance Cost May Drop

Section 404 requires that executives assess a company's internal controls in annual rep...

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