The Financial Education & Research Foundation (FERF) — the independent non-profit research affiliate of Financial Executives International— today released the findings of its 13th Annual Public Company Audit Fee Study. The study looks at various factors affecting financial reporting and external audits. This includes value derived from external audits; auditor insights; process efficiencies for public company preparers; and key factors driving audit fee changes.
Overall, average audit fees increased by 2.5% from 2020 to 2021. Expanded scope was cited as the primary reason as stated by 53 percent of member company respondents. Logically, respondents noted that audit management and audit team efforts also increased. The fee, scope, and effort increases were driven by a variety of factors to include acquisitions, organizational structure changes, and ICFR changes not related to the hybrid work environment among others.
Beyond existing filers, the study shows that a significant influx of companies that entered the capital markets through SPACs and IPOs continued to influence the overall audit marketplace. Read more.
