Cost Of SOX 1147

  • Is there any info available in the USA that gives an indication on the average cost of implementing SOX ? Also is it now resulting in companies taking on permanent staff in order to maintain SOX
    Soxmad 8O

  • Soxmad,
    you dont need to be mad any more :D…this link will help you…

  • this sox thing has costs the company I work for probably hundred of thousands and thousands of USD (new staff, big 4 outsourcing with consultants who don’t have a clue what they are talking about when dealing with companies outside north america)
    Such project was so badly under estimated and implemented, the need for new staff has increased over the months and some analyses needed to be redone from scratch after having spent so much time and efforts
    Sox has made the life of many employees a real misery just because of a few big cheeses who cheeted.
    total crap this sox thing.

  • There’s no question that even the best of implementations for SOX compliancy controls will add expense, staff additions, and overhead to the company. It’s a new cost of doing business. However, a company can also make things far worse than they ought to be, as noted below:

    1. Improper interpretation of standards can add too much control and bureacracy in the process (by the company professionals and sometimes by outside advisors). Companies need to invest in education and training, so a good foundation is created from the beginning of the process
    2. Unfortunately, some folks go beyond what’s required, by setting up new rules ‘in the name of SOX’ that are clearly outside the guidelines. This can add to the overhead unnecessarily.
    3. Improper research, analysis, and planning are factors that result in increased costs. A company should develop a project plan for implementing SOX standards that focuses on meeting requirements effectively and efficiently
    4. The SOX guidelines themselves could be further improved with greater clarily, real-world examples, etc. This would reduce misinterpretations and guide implementers better.
      None of us like increased governmental regulations. However, I’d suggest that since it must be done, that implementers try to see the glass as ‘half full’ where they can. A good implementation of SOX could provide some intangible benefits.
      For example, with improved accuracy in knowing the true financial picture within a company, better decision making could result. SOX controls will strengthen IT security plus any previously weak controls to ensure monies are properly accounted for. New controls might also even improve efficiencies and automation in the workflow instead of ‘this is the way we’ve always done things’.
      A lot has to do with perspective and since it has got to be done based on legal requirements, a company will get what ever they invest in the process. Research, planning, and education are all your friends in the effort 🙂

  • To us, without looking at the books, I think the largest single cost has been the increase in audit fee which almost doubled.

  • To us, without looking at the books, I think the largest single cost has been the increase in audit fee which almost doubled.
    Same for us. Amazingly fee proposals post year-1 seem to show some stickiness rather than adjusting back down 8O
    Anyone had much joy in pushing auditors in terms of year 1 sox requiring an one-off fee increase and that post-sox their controls based approach should be more efficient.

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