For the first time since the Sarbanes-Oxley Act went into effect in 2002, the annual cost of complying with the measure has dropped, according to a study by the Milwaukee-based law firm Foley & Lardner. The survey found that compliance costs at companies with less than $1 billion in revenue fell 16%, while at larger companies the decrease was a more modest 6%. Foley & Lardner also discovered, however, that audit fees continue to rise, representing more than 50% of out-of-pocket SOX expenses, a substantial increase from the 33% last year. Small-cap companies saw audit fees soar 22%, while the increase at S&P 500 companies was just 4%. One in three polled said that costs associated with SOX compliance forced them to reduce spending in critical areas of business.
