Resources for Sarbanes-Oxley (SOX)

Big Four Audit Firms Feel the Effects of Post SOX Inroads as Audit Fees Skyrocket

www.earthtimes.org

The Corporate Library today has released summary findings from its seminal study of the changes in the audit industry post Sarbanes-Oxley. In-depth analysis and data underlying these findings can be found in the full report.

A summation of the post Sarbanes-Oxley macro-changes to the audit industry are described by Paul Hodgson in this excerpt from "The Audit Landscape: 2001-2007" conclusion:

"During the period under study, there has been a revolution not only in the type of tasks performed by outside auditors, but also in the fees charged for those tasks. The substantial consultancy projects that companies commonly commissioned are no longer part of the outside auditor's responsibilities, although many of the firms, of course, still provide such services, just not to the same clients to whom they are providing audit services. In addition, the outside audit itself has changed dramatically, taking into account much more internal control testing and compliance work than it did pre-2002. The revolution in fees has mirrored this change in the type of work. We have witnessed a major shift from 'other costs' to audit and audit-related fees, as well as substantial increases in pure audit costs."

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