Why Benchmarking Audit Fees Is Silly

Audit committees are required to annually hire their independent auditor for the following year. It’s cost-prohibitive to switch auditors, so most companies hire the same auditor year-after-year. What does that mean for the fees that you pay to your auditors? Going up.

It’s inevitable that your audit committee doesn’t like how high the audit fees have gotten. It is what it is. There’s not much you can do.

What you can do is benchmark what others are paying. You can glean that from the proxy disclosures of your peers. From any public company.

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