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Tuesday, October 22, 2019

2019 SEC Audit Fee Survey

What’s Your Fee-To-Value Proposition?

Armanino reports annual audit fees from the 10-K and proxy statements of California-based, publicly traded companies, providing you with a tool to help you quickly compare your audit fees to those of your peers from the same revenue bracket.

We compiled and analyzed more than 800 California-based public companies’ revenues and audit fees over the past three years (2016-2018).* Consistently, we found companies overpaying for their national and Big 4 audits.

In 2018, companies with less than $50M in revenue listing Big 4 firms as their auditors paid 180% higher fees than the average fees paid by firms with the same revenue. In addition, companies within the $50M-$100M revenue range paid 70% higher fees than average when working with the Big 4.

When it comes to public companies, the fee-to-value proposition makes regional audit firms the most attractive option for companies on the lookout for a new audit partner — and significant cost savings with increased service.

*This year-over-year comparison excludes companies disclosing audit fees for the first time, as these audit fees typically include one-time IPO audit costs that significantly exceed recurring audit fees.


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