Corporate audit fees, which soared by punishing amounts in 2004 as companies struggled with their first year of Sarbanes-Oxley compliance, may be levelling off or even decreasing as executives and external auditors alike build on their second year of experience in 2005.
A Compliance Week analysis of audit and non-audit fees reported in recently filed 2005 proxies shows that many accelerated filers, who finished Year Two of compliance with SOX’ Section 404 in December, saw relief in 2005. While it’s too soon to tell exactly how pervasive the trend may be, the proxy statements are expected to provide some clues to the question that public companies of all sizes—along with regulators and investors—have been hoping to answer: What part did fees related to Year Two 404 costs play in audit fees overall?
