Big Four audit fees to fall

Audit income at the Big Four firms is likely to fall this year, as the effects of implementing Sarbanes-Oxley in the US drop off, according to the American head of KPMG.

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Eugene O'Kelly, chief executive of KPMG in the US, said in the Financial Times that better working practices relating to the review of companies' internal control would lead to a reduction of costs.

He said that during 2004, audit fees had increased by between 80% and 100%, but was anticipating a reduction in fees relating to Section 404 of about 15% to 25%.