Despite a slight dip during the COVID pandemic, the average audit fees paid by Securities and Exchange Commission registrants have more than tripled over the course of the past 20 years, according to a new analysis.
Over the period from 2003 to 2022, the average audit fees paid rose from $681,000 to $2,243,000, as reported in Ideagen Audit Analytics newly released “20-Year Review of Audit Fee Trends.” Total fees — including tax and other fees — also rose significantly, from $1,128,000 to $2,703,000 over the same period.
However, the universe of reporting companies actually decreased, from 10,101 in 2003 to 7,279 in 2022.
The report attributes much of the growth in fees to the increased complexity of audits due to regulatory developments like the release of major new standards around revenue recognition and leasing.
It also cited the enormous boom in 2020 and 2021 in special purpose acquisition companies, or SPACs — which generally have lower audit fees — as a possible reason for the dip in fees in those years.
Other highlights of the report:
- The Big Four continue to take up the lion’s share of audit fees, accounting for 92% of all audit fees paid in 2022.
- With 28% of the market, PwC led the league in terms of both total audit fees (at $4.66 billion) and average audit fees (at $4.88 million).
- Top 100 Firm EisnerAmper topped the list of audit firms by audit fees per million dollars of client revenue, at $16,595.
- Total audit fees paid by U.S. companies in 2022 rose to $12.36 billion, up 0.7% from 2021.
See the full report for more details, including breakdowns by filer type, industry and more.
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