PracticeAuditAudit fees up in the US

Audit fees up in the US

Cost of Sarbances-Oxley is down owing to improved efficiencies at companies

Although the cost of complying with rigorous Sarbanes-Oxley rules have
fallen, audit fees in the US have increased.

A survey by law firm Foley & Lardner shows that in 2006, audit fees rose
4% for mid-sized companies, 5% for small companies and about 6% for Standard
& Poor’s 500 companies, which includes many of the largest US companies.

Audit fees have risen consistently since 2001, with an average increase of 5%
in 2006 and 3% in 2005, compared with a dramatic 67% increase in 2004 when
internal control audits were phased in for public companies.

The study reveals that in 2006, companies with less than $1bn in annual
revenues spend about $2.82m annually on governance and compliance work.

The figures are up from 2005, when the same companies spent $2.79m on those
costs, but also is down from a 2004 peak, when costs were calculated at $3.44m,
Reuters.com reported.

Further reading:

Sarbanes-Oxley
costs fall but audit fees still up

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor