Audit: Higher fees, fewer clients

With the Sarbanes-Oxley Act and other pressures driving companies away from the public markets, the number of Securities and Exchange Commission-registered clients has declined, according to a new report — but the total fees charged to them by auditors has increased.

The report, "Audit Fee Trends: A 20-Year Review," from Ideagen Audit Analytics, points out that the universe of companies reporting audit fees has declined significantly over the years, with a 20-year high in 2011 of 11,114 dropping to a recent low of 6,674.

The introduction of SOX in 2002, with its extensive reporting requirements and corporate governance rules, is widely credited with deterring many companies from seeking capital on the public markets. Instead, they have sought capital from private partners.

Over the same period of time, though, those companies that have gone public ended up paying more in fees, in no small part, the report suggests, because they tend to be larger companies, with more complex audits.

The average audit fee has climbed from $2.38 million to $3.36 million.

The Big Four firms accounted for 69% of audit fees in 2025, with approximately $12.86 billion. PricewaterhouseCoopers led the ranks with 20.5% of audit fees, followed by Ernst & Young, with 18.8%.

The report also includes breakdowns by filing type and industry, details on the dwindling number of special purpose acquisition companies, and more.