Overview
Sarbanes-Oxley, also known as Sarbox, legislation was enacted in 2002 after several corporate fiscal scandals, including Enron, Worldcom, and Tyco. It is intended to protect investors and applies to any public corporation selling stock in the United States.
Sarbox has eleven titles, covering an accounting oversight board, auditor independence, corporate responsibility, financial disclosure, conflicts of interest, resources, studies and reports, fraud, penalties, and accountability.
Many have voiced concerns over the amount of effort required to meet all of the Sarbanes-Oxley fiduciary and governance requirements. Some suggest that the Sarbanes-Oxley requirements will lead to benefits that justify the costs. Yet, for many organizations, the costs are burdensome. According to a white paper released by the American Electronics Association, large companies are paying about $400 per employee to implement Sarbanes-Oxley, while small companies pay about $4000 per employee.
How much is your company paying to implement Sarbanes-Oxley? Where could you reduce costs through using external services?