One of the most common questions auditors receive from new clients is: "How much will the audit cost us?" The answer is that it depends on several factors, but that doesn't mean it's impossible to get an approximate estimate. In this article, we'll show you which factors influence the price of an audit and how you can make a rough calculation even before contacting an audit firm.
When planning and pricing an audit, auditors must ensure that the estimated number of hours and the resulting hourly rate correspond to the scope and complexity of the engagement. An excessively low hourly rate may indicate insufficient assurance of audit quality and could be perceived as a breach of ethical principles.
Company Size – Turnover, Assets, Complex Items in Financial Statements
When determining the price of an audit, audit firms primarily consider the size of the company from an accounting perspective. The most commonly assessed metrics are:
- Turnover amount - the higher the sales volume, the greater the potential for errors or risk items;
- Asset value (balance sheet) - a large volume of long-term assets, inventory, or receivables means more areas to review.
- Specific or complex items in the financial statements - e.g., accrued income in millions of euros, provisions, reserves, research costs, prepayments, leases under IFRS, investments in other companies.
In practice, however, indicative estimates of the minimum number of hours are often used based on company size:
- Small companies (TOTAL: €0 - €2 million): approximately 20 - 60 hours.
- Medium-sized companies (TOTAL: €2 - €10 million): approximately 50 - 120 hours.
- Large companies (TOTAL: over €10 million): approximately 100 - 300 hours or more, depending on complexity.
The TOTAL for business entities is calculated as the sum of assets (net), plus revenues (group 60), plus financial income (group 66).
Process Complexity – Industry, Type of Activity, and Accounting Complexity
The second key factor is the nature of the business - that is, how complex the accounting and operational processes are. From an auditor's perspective, there is a difference between auditing a company that provides administrative services and one involved in custom manufacturing, which requires inventory, work-in-progress projects, and leases.
- Less complex industries: consulting, leasing, services - fewer assets, less inventory, simpler accounting.
- Complex industries: construction, custom manufacturing, wholesale, distribution – many layers in accounting, often specific accounting for contracts or revenues.
- Other complicating factors include the consolidation of financial statements, reporting to a parent company, accounting according to IFRS, multiple currencies, or branches.
These aspects can increase the audit's complexity by tens of additional work hours, which will also be reflected in the final price.
The hourly rate of individual audit team members significantly influences the final audit price. This rate varies depending on the level of expertise, complexity of the engagement, and the type of audit firm.
Transparency, quality accounting, and preparedness can positively influence the price.
To save money, it is helpful to prepare for the audit effectively. We also recommend reading our article "3 Mistakes to Avoid When Preparing for an Audit That Will Save You Hundreds of Euros," where you will find practical tips on how to avoid unnecessary price increases and how to facilitate cooperation with the auditor. Proper preparation can often save you not only money but also time and stress. An audit is not a one-size-fits-all service. Every company is unique, and its price depends on various factors. If you are interested, you can request a non-binding price quotation – and you will see for yourself that even an audit can be predictable.
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