Most of the talk about AS5 has noted the many hoped-for benefits, a streamlined, less confused approach. But there is an obvious litmus test: audit fees. One would expect a fairly dramatic decline. In a speech in Japan, SEC commissioner Paul Atkins put it bluntly: "If auditing fees do not come down as a result of these changes, then something is terribly wrong with the interpretation of Audit Standard 5 and perhaps with the competitive landscape in the auditing profession itself." So you have to ask, is there a way that costs will not come down? At individual companies, there could be a spike in complexity due to growth or diversification or something else. And you would have to think that audit firms are not keen to be giving up revenue. It may be that they find ways to mute any cost cuts. Still, we should see lower audit fees generally. Stay tuned.  

For more on Atkins:
- here's a brief [1] on WebCPA.com

Related articles:
- Will AS5 really make compliance easier? [2]
- Can AS5 really trim audit bills? [3]
- As expected AS5 becomes law, what to expect [4]