Resources for Sarbanes-Oxley (SOX)

SEC Commissioner Expects Audit Fees to Decline

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SEC Commissioner Paul Atkins told U.S. business leaders in Japan that a recently issued auditing standard should have the effect of cutting audit fees.

"If auditing fees do not come down as a result of these changes, then something is terribly wrong with the interpretation of Audit Standard 5 and perhaps with the competitive landscape in the auditing profession itself," said Atkins, in a speech before the American Chamber of Commerce in Japan, last week.

In July, the Securities and Exchange Commission approved the Public Company Accounting Oversight Board's risk-based AS5 standard, replacing the older AS2, which companies had complained was unnecessarily time-consuming and inefficient. Atkins expects the new standard to force changes on auditors as they try to comply with the Sarbanes-Oxley Act's Section 404 requirements on auditing companies' internal controls.

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