ACC 330 Lecture Notes - Lecture 7: Whistleblower, Financial Statement, Internal Control
Document Summary
The act requires a public company"s independent auditor to issue an opinion on the effectiveness of the company"s internal control over financial reporting to accompany management"s assessment, and both are included in the company"s annual report. Fei survey (annual): finance executives international (fei) provides an annual survey on sox. These costs have continued to decline relative to revenues since 2004. 2007 study indicated that, for 168 companies with average revenues of . 7 billion, the average compliance costs were . 7 million (0. 036% of revenue). 200 companies with average revenues of . 8 billion, the average compliance costs were . 9 million (0. 043% of revenue), down 23% from 2005. Cost for decentralized companies (i. e. , those with multiple segments or divisions) were considerably more than centralized companies. Survey scores related to the positive effect of sox on investor confidence, reliability of financial statements, and fraud prevention continue to rise.
