Audit Fees Stable, But One-Third of Finance Leaders Are Questioning the Value, FERF Reports

FERF's 16th Annual Audit Fee Survey finds that the median audit fee for S&P 500 companies is $7.96 million, opinions are evenly split on whether AI is improving audit quality, and there is a growing gap between what finance leaders pay for audits and the strategic value they believe they receive.

MORRISTOWN, N.J., April 14, 2026 /PRNewswire/ -- The Financial Education & Research Foundation (FERF), the independent nonprofit research affiliate of Financial Executives International (FEI), today released its 16th Annual Audit Fee Survey and Insights Report, based on 95 finance and accounting professionals and a new benchmark analysis of FY2024 audit fee disclosures for approximately 470 S&P 500 companies. Audits were broadly stable in 2024 — yet a third of organizations are reconsidering their audit firm relationships, AI is reshaping audit methodology with contested results, and CFOs are pressing harder for strategic value from engagements that cost millions annually.

"The 2024 audit cycle was operationally stable, but the data reveal a profession under pressure to evolve. CFOs are paying significant fees, expecting more, and watching closely as AI enters the audit room. The firms that clearly demonstrate how technology translates into value — not just efficiency — will define the next era of the profession."
— Andrej Suskavcevic, CAE, President and CEO, Financial Executives International and Financial Education & Research Foundation

Audit Fees: What CFOs Are Actually Paying

• Median S&P 500 audit fee: $7.96 million, versus a mean of $12.2 million — a gap driven by outsized spend at the largest issuers.
• Top 25% of companies account for 58.5% of all S&P 500 audit fees paid.
• Fee intensity favors scale: mid-sized companies ($1B–$5B revenue) pay 0.116% of revenue in audit fees; companies above $5B pay just 0.057%.
• RFPs deliver results: organizations that ran a competitive review — even without switching firms — reported fee reductions of 25–30%.

One-Third of Organizations Are Reconsidering Their Auditor

Despite 51% of respondents having worked with their current auditor for more than ten years, long tenure is no longer an automatic endorsement. One-third of CFOs are now contemplating a change, citing rising fees, increasingly transactional relationships, and a perceived absence of proactive strategic dialogue throughout the year.

AI in the Audit: Efficiency Gains, Contested Value

Auditors are deploying AI for journal entry testing, anomaly detection, sample selection, and document review — but opinion is evenly split on whether it has improved audit quality. CFOs want AI to enable deeper business conversations; many instead describe it as enabling faster processing with little change in insight or challenge. Finance functions remain in the early stages of AI adoption, held back by limited internal expertise, cybersecurity concerns, and the absence of governance frameworks.

"What stands out this year is the value perception gap. CFOs are watching auditors adopt AI and asking a fair question: if the technology is making their work faster and cheaper, where are those savings going? The firms that can answer that question — clearly and with data — will have a significant advantage in the conversations ahead."
— John Minnich, Lead Researcher, FERF 16th Annual Audit Fee Survey

ESG: Paused, Not Abandoned

Responses on ESG assurance split nearly evenly following the EU's Omnibus I CSRD delay directive — half maintained readiness plans unchanged, half scaled back or redirected resources toward California's climate mandates (SB 253/261) and other near-term requirements. The report frames this as a strategic recalibration, with most organizations continuing foundational data governance and controls work.

Methodology and Sources

FERF's 16th Annual Audit Fee Survey and Insights Report is based on 95 survey responses from FEI Members across finance, accounting, governance, and audit roles, representing private companies, nonprofits, public entities, and government agencies. The survey and additional qualitative interviews were conducted from September 2025 through January 2026.

The report also benchmarks external audit fees for approximately 470 S&P 500 companies, using FY2024 data as reported by more than 4,000 SEC filers extracted from the Calcbench financial data platform (proxy-based audit fee disclosures). The analysis emphasizes median-based statistics, scale-adjusted fee intensity, and auditor segmentation to support professional benchmarking and interpretation.

This survey and research report was authored by John Minnich, CGMA, CPA, Founder and Executive Advisor at Minnich + Associates. Download the complete report here.

About FERF

The Financial Education & Research Foundation (FERF) is the research affiliate of Financial Executives International (FEI), advancing knowledge for senior finance professionals through independent, objective research on financial management, reporting, and governance.

SOURCE Financial Education & Research Foundation (FERF)