To The Editor:
The discussion about a recent study of auditing costs related to the Sarbanes-Oxley Act (SOX) misses two key points: compliance costs are declining, and the law’s benefits far outweigh its expense.
The Hartford Business Journal’s article (“SOX: Beast of Burden,” Sept. 10) accurately noted that auditing expenses can increase for a number of reasons that have nothing to do with Sarbanes-Oxley. However, there is no doubt that SOX-related costs are decreasing dramatically as auditors, companies and regulators adjust to the law.
It’s also clear that SOX has had the desired effect of bolstering investor confidence. The Center for Audit Quality’s recent survey of investors in Connecticut and elsewhere found that 84 percent have confidence in U.S. capital markets, up from a mere 31 percent in a 2002 Gallup poll.
While some may quibble over the precise cost of the law, its value to investors and the capital markets is beyond dispute.
Cindy Fornelli
Executive Director
Center for Audit Quality
Washington, D.C.
