SOX 404 compliance costs soar above original estimates.

PositionNational

SOX 404 compliance costs are expected to be 63 percent more on average than original estimates, according to Financial Executives International (FEI). 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...

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