How-to guide

How to use the Audit Fee Benchmark

Is your audit fee fair? Compare against peers your size. Here's how to read it, with three examples.

Audit fees for small filers vary wildly, and it's hard to know if yours is reasonable. This benchmarks your fee against comparable sub-$200M filers and shows what pushes it up or down.

What this tool does

You enter your size and a few complexity markers; it estimates a peer fee range so you can see whether you're high, low, or in-band — and why.

Who it's for

CFOs and audit-committee members at small-cap and micro-cap companies negotiating or sanity-checking audit fees.

How to use it — step by step

  1. Enter your size. Revenue / assets / market cap band.
  2. Add complexity markers. Restatement, material weakness, foreign ops, going concern, number of entities.
  3. Read your range. Where your fee sits versus comparable filers.
  4. Use it in the conversation. Bring the range to your audit-committee or fee negotiation.

How to read your result

Being above the range isn't automatically wrong — complexity, restatements, and first-year audits justify higher fees. Use it to ask better questions, not to demand a cut.

Worked examples

The same tool behaves differently depending on what you put in. Here are 3 situations.

$30M-revenue SRC, clean history

Inputs: Simple ops, one entity, no issues.

What the tool shows: Shows a typical peer band; if you're well above it with no complexity, that's worth a conversation.

What to do: Ask your firm what's driving the premium.

Pre-revenue biotech

Inputs: Little revenue, but complex equity and R&D.

What the tool shows: Explains why low revenue doesn't mean a low fee — warrants, going concern, and equity complexity drive hours.

What to do: Set expectations internally before you're surprised.

Company coming off a restatement

Inputs: Prior-year restatement and remediation.

What the tool shows: Flags that fees are expected to be materially higher during and after a restatement.

What to do: Budget for it; it normalises once controls are proven.

Common questions

Where does the benchmark come from? Public audit-fee disclosures for comparable small filers — it's an estimate range, not your firm's quote.

Will this get my fee reduced? It gives you leverage and context; the fee is still a negotiation.

Is fee alone a quality signal? No — cheapest isn't best. Match fee to risk and firm capability.

Verify with a professional — this is not advice. This tool is a structured starting point, not legal, accounting, or audit advice, and Unfolding Values is not your auditor. It can't see facts you don't enter. Confirm every conclusion with your auditor and SEC counsel before you act or file.