FEI survey shows decline in Sarbanes-Oxley compliance costs
19 May 2007
Financial Executives International (FEI) has published its sixth Sarbanes-Oxley compliance survey, which found that Section 404 (internal controls) compliance costs for large SEC registrants for 2006 were 23% less than comparable 2005 totals.
FEI attributed the reduction to "companies' increased efficiencies in complying with Section 404". Click for Press Release (PDF 51k). Respondents to the survey made a number of positive comments about SOX 404:
- 60% agreed that compliance with Section 404 has resulted in more investor confidence in their financial reports.
- 46% agreed that financial reports are more accurate.
- 48% agreed that financial reports are more reliable.
- 34% agreed that compliance with Section 404 has helped prevent or detect fraud.
