Bloomberg.com reported yesterday that compliance with the 2002 Sarbanes-Oxley Act has proven costly. In the story, Bloomberg cited Yellow Roadway Corp., which says it spent almost $10 million last year to meet the new rules.

The company hired 10 employees, added another 20 consultants and had to write new software. Fees to its auditor more than doubled to $4 million.
Yellow Roadway got a clean bill of health from its auditor, KPMG LLP, Bloomberg said, but others were less fortunate.
Auditors required more than 360 large companies to declare "weaknesses" in their financial controls, and as a result 400 companies filed annual reports late. Average audit fees for the 100 largest U.S. companies last year jumped 45 percent to $13 million.


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