Jason Bramwell at AccountingWeb reports on the Annual Audit Fee Survey from Financial Executives Research Foundation . Among the key findings:
- Audit fees paid by SEC filers last year averaged $1.5 million
- Nearly 21 percent of SEC filers reported ineffective internal controls over financial reporting
- Public companies as a whole realized a 3.1 percent median increase in audit fees last year, due primarily to acquisitions and the review of manual controls resulting from Public Company Accounting Oversight Board (PCAOB) inspections
Our take: We don’t see the trend of increasing audit fees slowing down any time soon. As we noted in our recent quarterly recap webinar, the PCAOB is increasing pressure on the audit firms, and that will lead to increased pressure on reporting companies, and that will lead to higher audit fees.
So what can you do about it? We believe that continuous improvement is the best answer. SVA has helped clients throughout the world improve financial processes, documentation, and control. This experience has shown us that developing a culture of continuous improvement leads to improved compliance, and lower cost audits.
Can we help you in the same way? Contact us today to ask about an assessment or one of education courses.