Improving disclosure of fees paid to audit firms

The extent to which an entity pays its audit firm for other services, in addition to the financial statement audit, is often seen as a key indicator of a possible threat to the auditor’s independence.  

For this reason, information about fees paid to an audit firm for different types of services received, is a disclosure of high interest to many users of financial statements.

Stakeholders have expressed concerns about the quality and consistency of current disclosures about fees paid to audit or review firms for other services and so in response the External Reporting Board has proposed introducing enhanced disclosure requirements.

The amendments proposed in the Exposure Drafts build on the existing disclosure requirements but introduce a new requirement for entities to disclose fees for services received from their audit or review firm using the following categories:

(a)  Audit or review of the financial statements

(b)  Other non-audit or review services:

(i)    Audit or review related services

(ii)   Other assurance services

(iii)  Taxation services

(iv)  Other services


Consultation documents

Submissions closed on 30 September 2022

Thank you to everyone who provided feedback. Submissions have been uploaded below. We are currently analysing the feedback received. Based on our preliminary analysis, feedback has indicated general support for enhancing disclosures about fees paid to audit firms, and the improved transparency and consistency this will provide. Most respondents supported the categories of fees to be disclosed; however, some respondents have requested further clarifications and refinements to categories and other disclosures. We will continue to work through analysing the feedback. You can follow the NZASB's deliberations on this project here.