April 21 2010
Audit fees zoomed after SARBOX passed, no longer. Now fee competition is back. I was surprised to read this CFO article that a firm was considering switching a second year after the first switch just to see if they could get yet a lower audit fee. So much for client loyalty, now the audit has become a necessary commodity again, like electricity.
Accountants got into trouble bidding on audits in the 1990s, soon standards grew lax, and well, you can see what happened. This is also a chance for the second tier firms, like Alex Grant, to get a new foothold. An interesting read, highly recommended.
Comments