The fee hike is being driven by a shortage of qualified auditors, particularly those with the experience to handle the most complex audits, and increased regulatory pressure. This has resulted in a huge hike in prices up by 29% in the last two years alone from £1.12bn in 2022,  revealed research by Thomson Reuters. In 2023, audit fees hit £1.27bn.

Kyle Gibbons, head of global accounts at Thomson Reuters Confirmation, said: ‘Auditors are under increasing regulatory pressure to improve the quality of their audits. The Financial Reporting Council (FRC) has levied sanctions, including large fines and severe reprimands designed to make the audit industry sit up and take notice.

More rigorous audits – including more audit testing and a step-change in resourcing for audit teams with accountancy firms – has pushed up the cost of audits.

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