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.
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The authors combined the results with an analysis of financial, audit fee, and compensation data from proxy statements, Audit Analytics, Compustat, and Thomson Reuters Institutional Holdings.
Islamabad -- In the first survey of its kind on audit quality conducted by the Audit Oversight Board (AOB) in February-March this year, 89 percent of audit partners said that audit staff comprising managers and trainees is the most important factor for audit quality, followed by 73 per cent who chose audit committees and 60 per cent who selected audit fee.
ISLAMABAD -- Audit Oversight Board (AOB) has organized first survey on audit quality in which 89 percent of audit partners have said audit staff comprising managers and trainees is the most important factor for audit quality, followed by 73 per cent chose audit committees and 60 per cent selected audit fee.
ISLAMABAD: Audit Oversight Board (AOB) has organized first survey on audit quality in which 89 percent of audit partners have said audit staff comprising managers and trainees is the most important factor for audit quality, followed by 73 per cent chose audit committees and 60 per cent selected audit fee.
Under this system, the auditor determines the audit fee it will charge, and the negotiation between auditor and client is eliminated.
Investors have long questioned the justification of issuing a standardised audit opinion despite auditors having an abundance of company information, spending so much time in applying different audit procedures, and charging a considerable audit fee. Something had to happen to break the status quo hence the KAMs.
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.
First, we provide evidence that auditor perception of dividend initiations is conditioned on the firm's investment opportunities, suggesting that the audit fee reduction for dividend initiation is ascribed to the agency problem of over- or underinvestment.
See a write-up of last year's audit fee survey here.
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.
After eliminating firms with missing audit fee data, our sample consisted of 387 companies reporting one or more IT MWs during the period of 2004 through 2009 and receiving an external auditor's adverse opinion on the effectiveness of their internal controls.
This was helped by a doubling of its audit fee for Lloyds Banking Group, which this year paid pounds 25.2m to PwC to go over its HBOS-enhanced books.