Armanino Debuts Public Company Audit Fee Dashboard, Highlighting Fee-to-Value Proposition

Interactive Tool Offers New Insights Into SEC Audit Fees Through Unique Accounting Firm Categorization Breakdown

SAN RAMON, Calif., Nov. 22, 2021 (GLOBE NEWSWIRE) — Armanino LLP, one of the 25 largest accounting and business consulting firms in the U.S., today announced the launch of its Public Company Audit Fee Dashboard. This tool offers users the first interactive approach to Armanino’s annual SEC Audit Fee Survey, which since 2015 has reported annual audit fees from the 10-K and proxy statements of United States-based, publicly traded companies. In a first-of-its-kind approach, Armanino’s Public Company Audit Fee Dashboard provides new ways of understanding audit fee data and the risk-to-reward value of audits through rich, visually impactful insights powered by Armanino’s proprietary analysis and data visualization.

Armanino’s interactive online tool makes the firm’s novel approach to audit fee data easier to interpret and access than ever before. Since 2015, Armanino has developed its own methodology for calculating and categorizing data for public company audit fees, providing angles of analysis that were previously unavailable to public companies, such as directly comparing audit fees among accounting firms of varied sizes.

The Public Company Audit Fee Dashboard, created by the firm’s advanced Data & Analytics experts, allows users to explore Armanino’s trend analysis and data indexed by industry, close ranges of revenue and geography by state and region, as well as auditor types, including regional, national and top-10 accounting firms. The dashboard takes multi-value inputs and displays Armanino’s analysis and calculations, such as indexed year-over-year trends and comparisons that help public companies decode their audit fee data in new, meaningful ways.

Further, through its extensive experience analyzing and calculating different aspects of public company audit fees, Armanino established the concept of a fee-to-value ratio. The firm’s analysis reveals drastically lower audit fees of regional and national accounting firms in comparison to the 10 largest firms in the industry — especially Big Four firms — performing audit work for publicly traded companies. Given the lower rates of audit deficiencies among auditors outside the Big Four, the dashboard challenges conventional wisdom surrounding public companies’ choice of Big Four audit services and the fee-to-value ratio they receive from the largest firms in the accounting industry.

Armanino’s insightful analysis of audit fee data empowers public companies to reduce risk, gain cost efficiencies and even potentially reinvest funds saved to propel the growth of their businesses. Companies can use Armanino’s dashboard to go beyond simple fee comparison, instead gaining dynamic insights and competitive intelligence regarding their audit fees and providers to make educated decisions about their choices when it comes to audit services.

“We’ve been analyzing and slicing audit fee data to help public companies gain transparency around this information and really understand the value of using an audit firm outside of the top 10,” said Matt Perreault, a partner in Armanino’s Audit practice. “For the first time, we’re offering an inside look into our unique method of analysis. By harnessing the power of data visualization and analytics, we’re giving public companies a tool to benchmark their audit fees against industry competitors, companies in the same geographical area or those with similar revenue. Our intelligence helps boards understand and reduce the risk of deficiencies and the 40%-50% higher fees we see associated with Big Four audits. Armanino is enabling public companies to examine the value of the audit function and better prepare for the future, financially and otherwise, and secure peace of mind around their audits.”

To build the Public Company Audit Fee Dashboard, Armanino’s Data & Analytics experts compiled and analyzed more than 5,000 public companies’ revenues and audit fees from 2018-2020 (data copyright Audit Analytics, 2021 IVES Group Inc.). Armanino’s Data & Analytics expert analysis, available through the Public Company Audit Fee Dashboard, shows public companies paying a substantial premium for audits from the 10 largest accounting firms in the U.S. In 2020, companies paid 51% higher fees when working with a top 10 firm, amounting to $1.05 million above the average audit fee of $2.06 million. Armanino also found average audit fees have increased by 3% over the last three years, with 5% increase between 2018-2019 and a decrease of 1.8% between 2019-2020.

To learn more about Armanino’s Public Company Audit Fee Dashboard, visit: https://learn.armaninollp.com/sec-comparison-public-company-audit-fees/#dashboard/

About Armanino LLP 

Armanino LLP (www.armaninollp.com) is one of the 25 largest independent accounting and business consulting firms in the nation. A certified B Corporation®, Armanino provides an integrated set of audit, tax, business management, consulting and technology solutions to companies in the U.S. and globally. The firm helps clients adapt and change in every stage of business, from startup through rapid growth to the sale of a company. Armanino emphasizes smart technology, leading a cloud revolution of financial, operational, sales and compliance tools that are transforming the way companies do business. Armanino is an independent member firm of Moore North America Inc. (MNA), which is itself a regional member of Moore Global Network Limited (MGNL), one of the world’s major accounting and consulting membership organizations. All the firms associated with MNA and MGNL are independent entities, owned and managed in each location. Their membership in, or association with, MNA or MGNL should not be construed as constituting or implying any partnership between them. In addition to its core consulting and accounting practices, Armanino operates its division, AMF Media Group (www.amfmediagroup.com), a media and communications services agency. Its affiliate, Intersect Capital (www.intersectcapitalllc.com) is an independent financial planning, wealth and lifestyle management firm. 

Kyle McGuire, AMF Media Group
925.790.2788
[email protected]

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