RADICAL reform of the large-listed company audit market has done little to dampen the sums audit committees shell out to the firms that vet their accounts.
According to Financial Directors annual breakdown of FTSE 350 audit fees, companies in the index paid out £1.1bn to the UK’s six largest auditors – including fees for audit, audit-related assurance and non-audit work.
PwC remains the most successful audit firm with 103 clients and £447m in fees. The most lucrative contract is KMPG’s audit of HSBC, pulling in total fees of £75m.
Read the full Financial Director Audit Fees Survey 2016, which includes a breakdown of the audit fees paid by every company in the FTSE 350.
The UK’s imminent exit from the EU that may now put the audit committee to the ultimate test
Audit tendering has turned from good practice to legal practice under the EU audit reforms
Businesses will have to think more strategically about where they can source those non-audit services in the future
The FRC has raised concerns that the FTSE 350 audit market remains highly concentrated among the Big Four despite high levels of tendering and rotation