SOX 404 compliance costs soar above original estimates.SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. 404 compliance costs are expected to be 63 percent more on average than original estimates, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Financial Executives International (FEI FEI Fédération Équestre Internationale. ). The group surveyed 224 companies with average revenues of $2.5 billion in both January and July. Compliance costs are now expected to reach $3.14 million, much higher than the January estimate of $1.93 million. The costs stem from unexpected burdens experienced in connection with the two major requirements of the provisions. First, each company's annual report must contain: * A statement of management's responsibility for an adequate internal control structure and procedures for financial reporting. * Management's assessment of the effectiveness of those procedures. Second, the provision requires the company's auditor to report and sign off on that assessment of the effectiveness, in accordance with standards set up by the Public Company Accounting Oversight Board The Public Company Accounting Oversight Board (or PCAOB) (sometimes called "Peekaboo") is a private-sector, non-profit corporation created by the Sarbanes-Oxley Act, a 2002 United States federal law, to oversee the auditors of public companies. (PCAOB PCAOB Public Company Accounting Oversight Board ). This article ran in the Ohio e-CPA Weekly on Aug. 18, 2004. |
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