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FERF's recently released 2018 Audit Fee Survey reveals these and other noteworthy findings for 2017 audits based on analysis of: (i) SEC filing information for 6,340 unique filers reporting in both 2016 and 2017, and (ii) responses to FERF's annual survey of public (83 responses) and private (132 responses) companies and non-profit organizations (22 responses):

• The median increase in audit fees among the nearly 6,340 unique filers was 5.7%.
• Among public company survey respondents: (i) median audit fees were $3,657,000 - an increase of 2.5% year-over-year, and (ii) median audit hours were 17,000 (median rate of $217/hour). The most common factors cited by respondents as contributors to audit fee increases were the new FASB standards (47%) and revenue recognition (42%), followed by acquisition activity (33%).
• Among private company respondents: (i) median audit fees were $71,775, (ii) the median increase in fees YoY was 3.2%, and (iii) median audit hours were 762 ($168/hour). 28% reported negotiation with their primary auditor as a primary factor contributing to an audit fee increase, followed by inflation at 25%.
• Among non-profit respondents, median audit fees were $45,000 - flat YoY. Among those whose fees increased, "inflation" was the most commonly cited factor (23%).

Fee increase mitigation factors cited by respondents include:

• Competitive marketplace for audit services
• More interaction between companies and their auditors throughout the year
• Collaborative planning and information preparation before the audit begins
• Negotiating with auditors about rates, including hours devoted to an audit
• Providing assistance to auditors by bringing audit-related tasks in-house

Automation - particularly for larger organizations - was also identified as a tactic to increase audit-related efficiencies, which may increase costs in the short term but is expected to reduce costs over time. More generally, ongoing and robust collaboration with the audit firm is identified as key.

Also notable: For those organizations wherein the issue was applicable, auditor requests that they make changes to their controls and controls documentation as a result of PCAOB requirements or inspection feedback were more common than not.