Regulation, inflation drove audit fees higher in 2013
Regulatory oversight and inflation have played significant roles in the rise in fees U.S. companies paid in 2013 to external auditors, according to new research by Financial Executives International.
The 87 public companies participating in the survey reported an average rise in audit fees of 4.5% over the previous year, and paid an average of $7.1 million in audit fees. The 104 private company respondents said their audit fees increased an average of 3.7% over the previous year and reported spending an average of $174,858 for their audits.
The average change in audit fees for the 203 not-for-profits surveyed was an increase of 1.5%, with an average fee of $73,023.
Public company respondents said their increase in audit fees was primarily the result of the review of manual controls resulting from PCAOB inspections, as well as other PCAOB issues. Read more on the Journal of Accountancy.