A recent report finds that the increase in audit fees will likely continue amid changes to internal control over financial reporting and inflationary pressures.
Overall average audit fees for public companies rose 6.4% in 2023 to $3.01 million from a year earlier, according to a Financial Education & Research Foundation report based on a survey and data from SEC filings of more than 4,000 organizations.
Survey respondents from public and private firms said changes to internal control over financial reporting were the main driver of increased audit team efforts in 2023.
The report said the continued rise of audit fees comes amid other inflationary pressures, leaving some companies and their audit committees to consider whether to begin submitting requests for proposals to auditors. Read more.