Audit fees in the U.S. appear to be climbing at a faster pace in recent years than in Canada and Europe, according to a new survey from the International Federation of Accountants.
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Average audit fees in France mostly held steady at 0.21% in 2019 and 2020 after rising from 0.19% in 2018 for companies on major exchanges with over €10 million in revenue. In Germany, average audit fees rose slightly from 0.09% in 2018 and 2019 to 0.11% of revenues. In Italy, they rose from 0.09% of revenue in 2019 to 0.1% in 2020. In the U.K. average audit fees rose more, from 0.14% in 2019 to 0.18% of revenue in 2020.
The study also includes information about tax-related and other non-audit professional services in the U.S., Canadian, and European markets across mega-cap, large-cap, mid-cap, small-cap, and micro-cap exchange-listed companies in nine industries.
In contrast to the rise in audit fees, the study found a flat or declining trend in non-audit service fees across various jurisdictions. Meanwhile, the study uncovered relatively higher costs, relative to revenues, for audits and services incurred by smaller companies.
“The data clearly shows differences across jurisdictions and industries, while demonstrating that fees for non-audit services appear to be on a flat or declining trend,” said IFAC CEO Kevin Dancey in a statement. “As audit quality and reform continue to be a focus for the global accountancy profession, this data provides necessary transparency and fosters understanding about the quality, cost and value of the professional services that public practice firms provide to their clients.”
The study updates an
