Analysis
According to a recent Manufacturers Alliance survey, manufacturers spent between $1.17M and $6.74M on U.S. GAAP audit fees in 2023. For this survey, member companies reported their most recent fiscal year data, ranging from 2022 to 2023. The Alliance breaks down the details of that number and provides comparisons on many aspects of audit fees and firms, including quote versus actual invoice, reliance on external auditors, and average hourly external auditor fees.
Key Findings
- Average audit fee to revenue ratio was .07% in 2023
- 60% reported that audit fees came in higher than the initial quote in 2023, a slight increase from 57% in 2021
- 58% reported having a fixed fee contract with a provision for adjustment if the required time exceeded the estimate with the remaining 42% negotiating a firm fixed fee contract with no provisions for adjustment. This represents a slight increase and decrease, respectively, from our last survey in 2021
Manufacturers Alliance has surveyed member companies’ CFOs, corporate controllers, internal auditors, and their teams about audit fees since 2005. This year’s survey provides data on audit fees and audit fee benchmarks for fiscal years 2022 and 2023. The Alliance created an interactive dashboard that allows users to analyze fees by revenue size, type of company (public, private, or both), and by audit fee range categories. Hovering over charts will show the number of companies who responded.
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AUDIT FIRMS & FEES: CURRENT STATUS AND FUTURE PLANNING