Audit Fee

Audit Fee

A fee a company pays an external auditor in exchange for performing an audit. Because the Sarbanes-Oxley Act made audits more complex, audit fees have increased significantly in the United States since 2001.
References in periodicals archive ?
Sarbanes-Oxley requires significantly more audit work, and I think audit firms view it as a chance to differentiate their product and substantially increase the audit fee," said Vernon Richardson, an accounting professor at the University of Arkansas at Fayetteville's Sam M.
In that case, the court quickly dispatched a contract audit fee scheme whereby an outside firm would audit property tax returns and receive 35 percent of any additional amount collected plus 100 percent of all first-year penalties collected.
Further, when audit fees at a handful of 2007 companies with extraordinary transactions are eliminated from the calculation, the average audit fee in 2007 actually fell by 0.
For example, in July we issued the annual FEI Audit Fee Survey, which is conducted by Financial Executives Research Foundation (FERF), the research affiliate of FEI.
July 30, 2013 /PRNewswire/ -- Financial Executives International (FEI), the association of choice for CFOs and other senior-level financial executives, today released the findings from its annual Audit Fee Survey.
FERF's annual Audit Fee Survey provides insight for benchmarking audit fees and experiences, and this year's report shows that after ten years, companies on average are seeing increases in the fees paid to auditors," said Marie Hollein, President and CEO of Financial Executives International and Financial Executives Research Foundation.
I have data only on the audit fee that a company paid to its newly engaged auditor, but I don't observe the audit fees that the company would have paid to other auditors.
9] In Malaysia found that, the auditor independence has a positive relationship with audit committee meetings, audit committee report along with annual report, the role of audit committee in determination of audit fee and composition of the audit committee.
We use data from 791 non-financial firms that have analyst forecast data for all 12 quarters during the period from 2005 to 2007 and find that, after controlling for other factors usually included in audit fee models, audit fees are lower for firms that repeatedly meet or beat analysts' forecasts.
Just as Wal-Mart, the company with the most revenue, paid the biggest audit fee, the company with the least revenue had the lowest accounting bill: Advanced Environmental Recycling Technologies Inc.
Chairman of the Audit Commission Michael O'Higgins said: "This procurement has been the result of a rigorous assessment and will mean significant audit fee savings for local councils, NHS trusts and other local bodies.
In summary, the audit fee ratio (i) increased from non-controversial period to the controversial pre-SOX period, and (ii) decreased from the controversial pre-SOX period to the post-SOX period.