{"id":785,"date":"2007-06-26T13:14:22","date_gmt":"2007-06-26T18:14:22","guid":{"rendered":"http:\/\/www.sequence-inc.com\/fraudfiles\/2007\/06\/26\/the-enormous-cost-of-complying-with-sarbanes-oxley-section-404\/"},"modified":"2007-06-26T13:15:04","modified_gmt":"2007-06-26T18:15:04","slug":"the-enormous-cost-of-complying-with-sarbanes-oxley-section-404","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/the-enormous-cost-of-complying-with-sarbanes-oxley-section-404\/","title":{"rendered":"The enormous cost of complying with Sarbanes-Oxley Section 404"},"content":{"rendered":"<p>The  Securities and Exchange Commission is being asked to take another look at <a href=\"http:\/\/www.cfo.com\/article.cfm\/9326679?f=members_062107\">the cost of complying with Section 404<\/a> of the Sarbanes-Oxley Act. This section deals with internal controls in public companies, and a major criticism of SOX is the enormous cost of compliance.Proposed Accounting Standard No. 5 would decrease the costs of compliance, as compared to Accounting Standard No. 2, the current standard. CFO.com says:<\/p>\n<blockquote><p> The costs will decrease because companies &#8220;will be able to focus on the areas that present the greatest risk of material misstatements in the financials&#8221; and their managers will be able to exert judgment concerning which part of their compliance efforts to stress.<\/p><\/blockquote>\n<p>Some critics complain that the costs are purported to be lower, but no proof has been offered.<\/p>\n<p>How about this trip down memory lane? In 2003, the SEC estimated the total annual cost of implementing Section 404 at $1.24 billion. That was $91,000 per company. Critics of these numbers said the actual cost was probably 100 times higher.  <a href=\"http:\/\/technorati.com\/tag\/tracy\" rel=\"tag\"><\/a> <a href=\"http:\/\/technorati.com\/tag\/coenen\" rel=\"tag\"><\/a> <a href=\"http:\/\/technorati.com\/tag\/tracy+coenen\" rel=\"tag\"><\/a><a href=\"http:\/\/technorati.com\/tag\/tracy+l+coenen\" rel=\"tag\"><\/a><a href=\"http:\/\/technorati.com\/tag\/sarbanes+oxley\" rel=\"tag\"><\/a> <a href=\"http:\/\/technorati.com\/tag\/fraud\" rel=\"tag\"><\/a> <a href=\"http:\/\/technorati.com\/tag\/sox\" rel=\"tag\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission is being asked to take another look at the cost of complying with Section 404 of the Sarbanes-Oxley Act. This section deals with internal controls in public companies, and a major criticism of SOX is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-785","post","type-post","status-publish","format-standard","hentry","category-fraud-news-stories"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-cF","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=785"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}