The sophomore jinx was lifted for some big companies as 25 of them reported lower audit fees in their second-year of Sarbox compliance. Other companies are still on an upward trajectory.
Audit fees declined for 25 large companies in 2005, the second-year of Sarbanes Oxley Act compliance for accelerated filers. That's in sharp contrast to first-year experiences for these big companies, which were pummeled by skyrocketing audit fees. In some cases, audit fees rose by 70 percent between 2003 and 2004.
Four companies — Aflac, BellSouth, Johnson & Johnson, and Motorola — cited a drop in fees related to Sarbox Section 404 compliance as the reason for the overall decrease in their 2005 fees. Section 404 is the provision of Sarbox that requires companies to test and maintain adequate controls over their financial reporting systems and procedures. It also requires that auditors attest that their client's financial controls are adequate.
See full Article.
Posts
