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Sarbanes-Oxley News & Developments
Sarbox Costly? YES - NORecent survey shows some companies are finding Sarbox compliance costly, others are not.
> > Recent survey respondents split on whether Sarbanes-Oxley (SOX) compliance is costly; small companies are having a tougher time. Plus: another poll reveals many companies have not yet launched SOX projects.
Finance chefs at U.S. multinational corporations are split 50-50 on the cost of complying with the Sarbanes-Oxley Act(SOX) of 2002. According to the latest quarterly Management Barometer survey from PricewaterhouseCoopers, 56% of 150 CFOs and general managers surveyed said initial compliance with SOX was not very costly for their company; 44% said compliance was at lwast somewhat costly.
The bulk of the compliance costs seems to come from the administration footwork of gathering and certifying information. According to the survey, 76% of SOX compliance costs is for added internal resourses, and 24% for external assistance. The most expensive aspects of complaince: documentation; legal requirements; detailed policy development; self-assessment; attesting requirements and certifications; and staff training. Forty-one percent reported spending money on new tools and technology.
How companies view the added administration cost of complying with the new law appears to be a function of size and preparedness - said Frank Brown from PwC. Larger companies with a well-established corporate reporting infrastructore are better able to handle the added certification and disclosure requirements of the new law. For smaller companies, compliance has been more of a burden.
Source: CFO article
Published:2003-07-07
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