A 2007 study from the SEC of the benefits of Sarbanes-Oxley is listed below. There are some excellent statistics about costing trends. Now, our solutions are extraordinarily less expensive than the costs listed below but the information presented below is very meaningful.
More to come:
"Sarbanes-Oxley Act of 2002
Section 404 - Internal Controls over Financial Reporting
Cost Trends of Management's Assessment and the Audit of ICFR post 2007 Reforms
SEC Study
- General Cost Trends
- Average Section 404(b) costs declined ~ 30% from $950k to $701k from 2006 - 2008 for ALL companies that complied with 404(b)
- Median costs4 declined ~ 23% from $380k to $294k over the same period
- Average Section 404(b) costs declined ~ 30% from $950k to $701k from 2006 - 2008 for ALL companies that complied with 404(b)
- Smaller public companies (<$75 million in public float)
- For companies with less than $75 million in market cap that were required to comply with Section 404(b), median costs declined ~42% from $200k to $116k from 2006-20085
- Companies who had to comply for the 1st time AFTER 2007 reforms were enacted saw compliance costs trend as follows:
- Total compliance costs (section 404a and 404b) - decreased ~14% compared to companies who complied for the first time BEFORE the 2007 reforms
- Section 404(b) costs declined ~21% compared to companies who complied for the first time BEFORE the 2007 reforms
- ILLUSTRATES IMPACT 2007 REFORMS HAD ON REDUCING COSTS FOR NEWLY COMPLIANT COMPANIES"
View the full study here.
