Audit fees
Commonwealth authorities and companies and their subsidiaries that are subject to the Commonwealth Authorities and Companies Act 1997 are required to pay fees for the audit of their financial statements. These fees are based on a scale determined by the Auditor-General under section 14 of the Auditor-General Act 1997.
In determining audit fees, we continue to use a system whereby the audit fees charged for financial statement audits are calculated on a cost recovery basis using an accrual-based costing model to determine an hourly charge out rate per level. The costing model takes into account all relevant costs including the attribution of overhead costs.23 Audit fees were recovered, either notionally or actually, in 2006–07.
23 Section 14 also requires the Auditor–General to include in the ANAO Annual Report, details of the basis on which the Auditor-General determined the audit fees that applied during the financial year concerned.