Florham Park, N.J. (May 1, 2008)
By WebCPA staff

The total average cost of Sarbanes-Oxley Section 404 compliance reached $1.7 million last year, according to a newly released survey.

Financial Executives International polled 185 companies to gauge their experiences with Section 404 internal control audit compliance in fiscal 2007. The organization found that total audit fees for U.S. accelerated filers averaged $3.6 million, a slight increase of 1.8 percent from the previous year.

Costs of SOX 404 compliance have been on the decline, according to the report. "The internal costs are decreasing," said Christine DiFabio, vice president of technical activities for FEI. "Companies are not outsourcing as much now and they're getting more efficient." She added that companies are also making better use of judgment and making their internal control audits more risk-based, which adds to efficiency.