SOURCE: The Corporate Library

August 22, 2007 09:40 ET

The Corporate Library Releases the Most Extensive Study of the Audit Industry Ever Published

PORTLAND, ME--(Marketwire - August 22, 2007) - With over 100 tables, a comprehensive 130-page special study by The Corporate Library details the changing regulatory audit landscape, auditor market share, audit fees, audit fees as a percentage of total auditor costs and total auditor costs, as well as other fees paid to audit firms. Analyses are given by S&P Index, Fortune rank, market capitalization, revenue, number of employees and industry. No other study provides this depth of analysis.

The special study gives matched sample analyses -- covering the same group of 1,293 companies in each of the six years -- for each set of data points, as well as whole sample analyses based on between 1,500 and 3,139 companies.

"The Audit Landscape 2001-2007" is based on over 240,000 pieces of data, spans more than six years, covers over 3,000 public companies, and includes more than 100 audit firms.

A small sampling of specific findings includes the following facts:

--  Total fees paid to auditors in fiscal 2006 amounted to $10.5 billion.
--  Over 95 percent of 2006 total fees was spent on audit or audit-related
    fees.
--  In a matched sample analysis, the number of audit firms in the market
    increased from nine in 2001 to 22 in 2006.
--  Maximum tenure for an audit firm was more than 90 years.
    

The study presents in-depth analysis and extensive detail on topics such as:

--  the escalating cost of auditing companies since the enactment of the
    Sarbanes-Oxley Act of 2002 (SOX);
--  the change in the makeup of total audit costs since SOX;
--  the decline in the costs associated with other services provided by
    independent audit firms;
--  what years saw increases in audit fees outpacing the increase in total
    auditor costs;
--  the influence industry has on auditing costs;
--  the changing market share of the Big Four accounting firms and the
    many smaller firms that have entered the market;
--  how smaller firms are making inroads into the Big Four's market share;
--  where Arthur Andersen's former clients went;
--  which firms dominate the S&P 500;
--  which firms audit the largest market share of certain industry groups;
--  median tenure for audit firms;
--  explanations for auditor changes; and
--  the influence of a company's employee headcount on audit costs.
    

The special study is available from The Corporate Library in both hard copy for single report purchases and electronic format for firm-wide distribution. The underlying data used in the study is also available for sale.

About The Corporate Library

The Corporate Library is an independent research firm that provides corporate governance information products, research services and data to a broad variety of clients including institutional investors, corporations, D&O liability insurers, law firms, accounting firms, executive search firms, academic institutions and the media. The Corporate Library produces the definitive ratings of U.S. corporate boards of directors, allowing businesses that subscribe to the service to evaluate governance as an element of investment and other risk. The Corporate Library is also a leading publisher of corporate governance reports and studies, including reports on CEO employment contracts, governance practices, mutual fund proxy voting, and executive and director compensation, which its analysts compile using its extensive database of over 3,000 public companies and over 30,000 executives and directors. Additional information on The Corporate Library and its suite of online corporate governance data and analysis products can be found on its website at www.thecorporatelibrary.com.

Contact Information

  • Contact:
    Melanie Bond
    Media Manager
    The Corporate Library
    Email Contact
    207 553-5667