The Big Four continue to dominate the FTSE 100 company audit market, but fees are being squeezed, reports Liz Loxton
As might be expected, last year was subdued in terms of fees generated by FTSE 100 auditors. The total fees paid by FTSE 100 companies for their 2010/11 audits rose only very slightly by £2.6m, from £519.4m to £522m – a mere 0.5% increase on the previous year.
Fees for the main audit combined with audit-related work and non-audit work actually fell by 2.2% from £827.8m to £809.5m.
Audit-related fees suffered the biggest percentage drop, down by 18%. The fall almost certainly reflects the fact that as International Financial Reporting Standards (IFRS) beds down, the biggest companies have less of a requirement for advice on international standards. It is clear too that transactions requiring auditor scrutiny are fewer in number in persistently difficult trading conditions.
