The worst seems to be over for US companies forced to comply with the burdensome Sarbanes-Oxley Act, with further evidence emerging that auditing costs related to section 404 of the rules are dropping.
The general opinion now is that, as well as identifying efficiencies during the second year under the new laws, the higher costs first time around were also attributable to many mistakes made by companies trying to implement the new rules. UK companies could do well to learn from this, according to Dawn Cresswell, part of UHY Hacker Young’s Sarbox advisory team.
From 15 July, UK companies with a listing in the US will also have to face the same tough rules on internal controls. But as Cresswell said: ‘UK companies have the advantage of being able to see what mistakes have been made in the US and making sure they don’t make the same ones.
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