Big Four audit fees to fall
KPMG US head says Sarbanes-Oxley costs will be down this year
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.
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%.