Ideagen Audit Analytics recently published its annual report on audit fee trends.  The report covers the period from 2005 – 2024 and includes data from more than 6,600 registrants. Here are some of the highlights:

– Average audit fees reached a record high of $3.26 million in 2024, representing a 9% increase from the previous year

– The Big Four firms control 69% of the audit market, with PwC leading at 21% market share and $5.5 million average fees

– Finance industry companies pay the highest average audit fees at $4.1 million, while life sciences companies pay the most relative to revenue

– Foreign private issuers consistently pay higher audit fees as a proportion of revenue compared to domestic filers

The report notes that public company audit fees have increased steadily over the past 20 years, reflecting the increasing complexity of audits and heightened regulatory oversight. The report suggests that industry consolidation and the ability of private equity funds to invest in accounting firms are likely to impact audit fee trends over the coming years.

Yom Kippur begins this evening, and we’d like to extend our best wishes for an easy and meaningful fast to all our friends who are observing the holiday.

– John Jenkins