Tag Archives: compliance costs

What Is the Cost of Poor Quality?

If you are trying to explain the importance of quality to management, then you need to explain it to management using the language of management — costs and return on investment. Crosby described the cost of quality as the cost of nonconformance. Juran, another quality guru, explained it as the cost of poor quality or the costs incurred as a result of poor quality. What Is the Cost of Poor Quality (COPQ)? Continue reading What Is the Cost of Poor Quality?

How to Reduce SOX Accounting Compliance Costs

If you qualify as a non-accelerated filer (i.e., your company’s public float is under $75 million), you’ll have to start complying with Section 404(b) of SOX, which requires company management and independent auditors to sign off on, or attest to, the effectiveness of your risk control framework or accounting policies and procedures for internal control. Are your processes protecting you from the risk of material misstatements (RMM)? Do you know how to control and reduce SOX compliance costs? Continue reading How to Reduce SOX Accounting Compliance Costs

How Do Procedures Reduce Compliance Costs?

Writing procedures is an exercise in controlling compliance costs. You’re trying to comply with customer expectations, management objectives, government regulations, and/or industry standards, making compliance expensive. Regardless of the reason for compliance, wouldn’t you want to write as few procedures as possible if you could still conform to the compliance mandate and keep your compliance costs to a minimum? Continue reading How Do Procedures Reduce Compliance Costs?