This research alert reviews the financial ramifications of the Sarbanes-Oxley Act of 2002, which was passed in response to corporate scandals like the Enron collapse. Researchers estimate that companies have spent $14 billion on SOX compliance since the measure became law, and by the end of this year, the numbers will surpass $20 billion. 2006 marks the beginning of Year Three compliance for large U.S. companies, but others are still battling initial compliance costs. Foreign firms are expected to meet compliance requirements in fiscal years ending after July of this year, and small companies, whose deadline has been pushed back several times due to concerns that they would not be able to afford compliance any sooner, must be in compliance by 2007-2008. The report also includes a list of SOX trends for 2006.
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