FTSE 350 non-audit fees falls by a quarter

by Richard Crump

More from this author

13 Dec 2013

  • Comments
City of London

FEES paid to the auditors of FTSE 350 companies for non-audit services has fallen by 24% over the last year, according to Grant Thornton.

The firm's twelfth annual Corporate Governance Review found that fees paid fell to 68% of audit fees in 2012 to 51.7% in 2013.

The trend is particularly marked among FTSE 100 companies, where non-audit fees on average now represent 33.7% of the external audit fee, representing a 43% drop.

"This reduction of non-audit fees must not lead to complacency amongst the stakeholder community and is likely to be a reflection of the current high profile media commentary around better auditor independence; coupled with the lacklustre economy and reduced M&A activity," said Simon Lowe, chairman of the Grant Thornton Corporate Governance Institute.

Elsewhere chairmen, both of committees and the group, are taking greater personal accountability for standards of governance with personal introductions to governance statements rising markedly.

The research also found that companies provide shareholders with limited information on risk management and internal control, with only 27% of the FTSE 350 provide real insight into how they review the effectiveness of their systems of internal control, showing no improvement year on year.

Additionally, 84% do not demonstrate an integrated reporting approach, failing to demonstrate the link between discussion of their business model, future plans, strategy and key risks.

"There remains a lot of room for improvement. Clearly, many businesses are still struggling to articulate the relationship between their business model, strategy and risk management frameworks," Lowe said.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.