Jenny McCallen, Roy Schmardebeck, Jonathan E. Shipman and Robert Lowell Whited

The Costs of Complying with SOX’s Internal-Controls Audit Requirement

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Section 404(b) of the Sarbanes Oxley Act (SOX) requires auditors to test and report on the effectiveness of internal control over financial reporting (ICFR) for accelerated and large accelerated filers. Although Iliev (2010) documents substantial costs to initially comply with …