Large US corporates take Sarbanes-Oxley hit
The Public Company Oversight Accounting Board (PCAOB) has sent out cost details for companies that need to comply with the Sarbanes-Oxley Act of 2002.
The account support fees will affect publicly listed companies, investment companies and other equity issuers; over 8,500 companies will be notified.
The accounting support fees are based on the average monthly US market capitalization of the equity issuer. Just under two-thirds will pay under $1,000 or less to the PCAOB, while the top 1,000 equity issuers will pay 87% of the total fees due.
"The bulk of our accounting support fees are assessed against the largest equity issuers," said PCAOB Chairman William J. McDonough. "Small companies need not be concerned about increased costs while they and their shareholders benefit from the PCAOB's attention to the quality of audits."
The PCAOB was created by the Sarbanes-Oxley Act of 2002 to oversee the auditing of public companies and protect investor interests.