Although the totals fluctuated slightly from year to year, audit fees paid by Canadian issuers from 2007 to 2013 increased steady at an average rate of about 3.2% a year for six years. Over six years, the percentage of non-audit fees relative to total fees (considered important due to concerns about auditor independence) dropped from 29% for fiscal year 2007 to 23% for 2013. An analysis of audit fees by market cap tiers shows that the percentage of revenue used to pay audit fees is very different for Canadian issuers above and below a $10 million threshold: Companies at a value of $500 million or more paying less than one-tenth of 1%. Companies with over $10 million in market cap generally pay less than 1% of their revenue in total fees. Companies below $10 million pay on average about 2.5% of their revenue for audit fees and 3.3% for total fees. A review of auditor departures and financial restatements experienced by the research population finds that the number of these events declined in recent years.
