Calculating Costs of Sarbanes-Oxley Compliance
Here's how to get started on an accounting system that is an effective guard against discrepancies.
Its August of 2003: Do you know where your companys Sarbanes-Oxley compliance system is?
Creating a system that meets the new requirements wont be cheap, either. AMR Research estimates that Fortune 1000 companies will spend $2.5 billion on Sarbanes-Oxley compliance this year. A few million of that will come from you, mostly in staff time. A consulting firm will help you scope out the project and implement a Web-based compliance application that will help manage the flow of work. But in the end, technology and consulting costs will be just a drop in the bucket compared with your ongoing internal costs.
The return on this investment? The exhaustive analysis of processes may generate some incremental returns, but few companies are expecting a windfall. For now, its simply a cost of doing business—one youll be sure to document and certify in your brand-new compliance system.
To download an interactive spreadsheet you can use to total your own numbers, click on the above .xls download graphic link.