Do think that compliance with sox would increase audit fees

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Companies listed on U.S. stock exchanges must comply with the Sarbanes-Oxley Act. This compliance gives investors greater assurance that these companies have adequate internal controls in place. In addition, the auditors for these publicly traded companies must attest to the effectiveness of such controls. This process can result in discovery of weaknesses that companies had previously overlooked. After correcting these weaknesses to satisfy auditors, investors may find such companies to be less risky and therefore better investments.

Problem 1:
In order to comply with SOX, a company must document its internal control procedures and have an auditor attest to their effectiveness. Do you think that compliance with SOX would increase audit fees for companies?

Reference no: EM132904279

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