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Report: Audit Fees for Publicly Held Firms Increased by 2 Percent in Fiscal 2010

Report: Audit Fees Increased by 2 Percent in Fiscal 2010

A new report compiled by the Financial Executives Research Foundation (FERF) reportedly found that publicly held companies paid an average of 2 percent more in total audit fees during fiscal 2010.

According to CFOZone, the report, which surveyed nearly 250 executives, found that the publicly held firms paid $3.3 million on average in audit fees. Some of the reasons for the increase that were offered by the executives included operational changes within companies and work conducted by internal staff members, the publication said.

While publicly held companies experienced an uptick in audit fees from fiscal 2009 to fiscal 2010, private companies reported an average of $222,300 in audit fees in fiscal 2010, nearly the same total experienced the year before.

Additionally, the 46 private firms with revenues between $25 million and $99 million saw a decrease of 2 percent in audit fees during fiscal 2010, the publication reported.

While audit fees can significantly hinder a company's finances, Marc Newman, an assurance manager at SS&G, told Smart Business Network that such costs can be limited if the auditor and business owners discuss all transactions to ensure that financial statements are accurate at all times.