DealBreaker's John Carney is a big old flirt. Still, that's ok with me. Flattery (read: ass kissing) is an important skill in finance. I have to wag my finger at him today, however, for though he cites me regularly, he has apparently missed my piece on SarOx costs, and their continual rise over time- contrary to the predictions of about everyone that they would decline after a first year peak. Hasn't happened. Says Carney:
...one problem with this idea is that evidence has begun to show that the costs of SOX decrease over time. Getting compliant costs more than staying compliant, so the scale of costs and benefits is sliding on both sides. That’s not to say it won’t work but it would take some more work to see if it does.
Says the Study I cite via the Financial Times (subscription required):
Accountancy firms have emerged as surprise long-lasting beneficiaries of the Sarbanes-Oxley Act, as US-listed companies have been forced to pay their auditors larger fees to comply with the tough corporate governance rules, according to a new study.
The findings, in a report by law firm Foley & Lardner, confound predictions that US companies would only face a one-off increase in audit fees and other costs as a result of the legislation, introduced after the Enron and WorldCom scandals.