FERF Study Shows Companies are Taking Action Against Rising Audit Costs
The cost to public companies for audits has increased beyond the Producer Price Index, but some of the larger companies seem to be controlling those cost increases my streamlining their internal controls in order to make themselves more prepared for an audit.
The Financial Executives Research Foundation honed in on median figures to eliminate the effect of outliers and their recent audit data says audit fee increases across all public companies landed at 3.2 percent for 2015 audits.The study also showed that audit costs are not equal across the type or size of individual companies.
When it comes to public companies, non-accelerated filers reported audit fee increases of 4.8 percent compared with 3.8 percent for large accelerated filers. Accelerated filers reported fee increases of 3 percent, while smaller reporting companies, which are not subject to the audit of internal control over financial reporting under Sarbanes-Oxley, reported increases of only 2.3 percent.
In her article, Tammy Whitehouse explores how some companies are taking action against rising audit fees.
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