New Regulations: PREPARING for the UNPLANNED COSTS

Johnson, Margaret A.; Wiechart, Fran S.
January 2003
Financial Executive;Jan/Feb2003, Vol. 19 Issue 1, p16
Academic Journal
The article discusses the cost to public companies in the U.S. of complying with the Sarbanes-Oxley Act of 2002. Many firms will have to hire additional staff with financial skills and pay higher auditing fees. Greater attention to the accuracy of financial reporting has produced longer and more frequent board meetings, thus increasing compensation to board members. The cost of obtaining directors and officers insurance has risen substantially. An estimate by The Johnsson Group put annual compliance costs for a typical Fortune 500 at up to $8 million.


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