Last month, the annual Foley & Lardner study on the financial impact of Sarbanes-Oxley indicated that out-of-pocket costs for compliance continue to increase despite a decrease in overall compliance costs. The increase was attributed to increasing audit and legal fees.
The Foley & Lardner findings don't ring true for everyone, though. Hartford Business Journal reports that Hartford, Conn.-area CFOs and accountants featured in this story have not seen such an increase.
In fact, Steve Jackson, a partner at accounting firm UHY had this to say:
I'm not convinced that they know what they're talking about. My experience is that costs have come down.
And Carl Paschetag, the CFO of a waste-management company agrees.
Foley & Lardner stands by the study results, according to senior partner and study director Tom Hartman, who is quoted in the study.
Hartman also pointed out that the new audit standard will more than likely affect Sarbanes-Oxley costs, but it will take time to determine what that effect will be. Adopted by the Securities and Exchange Commission late in July, Auditing Standard 5 will take effect in November.