Artaflex Inc V.ATF

Are Audit Fees Too Rich?

[jackbnimble]

Just reviewed the Notice of Annual and Special Meeting that I received. Its available on www.sedar.com.

Noticed that the 2008 audit fees with a big four audit firm were $406,399 and the 2007 fees were $293,069. These fees represent about 1% of sales and seem to be twice as high as other comparable small public companies.

Are we being soaked? If we had a smaller reputable audit firm do the work that would save over $200,000 per year. That expressed in EPS terms is a quarter of a cent per share. That is huge given the tight margins in this company and industry.

Does anyone know anything more about this to determine if we are being hosed? I hear that after an audit with one of these big firms, the audit partner takes the company out to lunch...of course the company is paying for the audit firm's "generosity" with inflated fees.

Any input or advice before the June 17 AGM would be helpful.

[musing]

Great point Jack! I can't help with your question. Hopefully someone else can. But even if not, its a completely legitimate question to ask at the AGM.  Perhaps the 2008 fees were high because of the complications of associated with ATQ's affiliation with the Israeli company, paying off debts and more generally greater complications in that year?cheers

[wormbuster]

Send an email or call to Marty or the CFO. You will get a frank answer....