Audit Analytics’ most recent report, Eighteen Year Review of Audit Fee & Non-Audit Fee Trends, was released last week. Using data from our Audit Fees database, this report provides a detailed analysis and comparison of trends in audit and non-audit fees disclosed by accelerated and large accelerated filers over the eighteen-year period between 2002-2019.
A review of non-audit fees as compared to audit fees is of interest, as the SEC considers high non-audit fees to be an auditor independence concern. To address this concern, the SEC created audit fee categories, requiring registrants to disclose fees as follows: audit fees, audit related fees, tax fees, and all other fees.
At times, analysts prefer to view audit fees in isolation while other prefer to see audit and audit related fees together. For this reason, the report presents both approaches.
Key highlights of this report include:
- audit fees and non-audit fees as a percentage of total fees;
- audit fees and non-audit fees per $1 million in revenue; and
- audit fees and non-audit fees by companies that disclosed an adverse auditor attestation for fiscal year 2016.
As shown below, in 2019, non-audit fees (excluding audit related) represented 9.6% of the total fees paid by accelerated filers, marking the third consecutive year that this percentage was below 10%.
This amount jumps to 18.4% when audit related fees are included in non-audit fees.
For the complete analysis, download your copy of the report today!
Interested in our content? Be sure to subscribe to receive our email notifications.