Financial Accounting News

Revenue Recognition, Leasing Rule Changes Boost Audit Fees

Dec. 18, 2018, 7:13 PM

Major changes in accounting rules for revenue recognition and leases have pushed up audit fees for publicly traded companies.

Preparations to automate accounting work also contributed to the 2.5 percent median increase in audit fees, according to the Financial Education and Research Foundation, which is an affiliate of Financial Executives International.

The foundation’s report looked at fees for the 2017 audit cycle. In comparison, fees rose just 1.3 percent in 2016.

Major Work

Both revenue recognition and lease accounting changes required a significant amount of work with the auditor to ensure that companies followed the new accounting standards, and to...

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