How much does an audit cost?

[Mars]

I need to have an audit done. From 2005 to current.

I'm not sure if I need to make my supplier audit my account, of if I need to audit the account on my side. There are some serious discrepancies between what my paperwork says and theirs.

Can anyone give me some advice on this? I'm not sure about the right way forward.

 

[|tera|]

Audit on your side.

Phone an Accounting firm like KPMG or similar and request a Quotation.

 

[rorz0r]

That's a "how long is a piece of string" type question. For a little shelf company not doing anything getting an auditor to sign off your stuff very roughly 2k. For a big SA company it can be over 1mil. You can work on how many hours you reckon it will take them and use a rate of R750/hr or so for an article clerk, R1000+ for a qualified auditor. Doesn't sound like you need anyone higher up than that.

 

[ice_cubes]

Do the supplier reconcilliation yourself, then get an accountant/bookeeper to double check your figures.

 

[semaj]

I work as an auditor at a big 4 auditing firm. The cost of an audit generally depends on the complexity and volume of transactions and also the state of your accounting records. If you have a simple reselling or service business with limited suppliers and customers the amount of time and experience required will be quite low resulting in a lower audit fee.

I would suggest shopping around from both the big 4 and smaller firms. The big 4 are generally more expensive than smaller firms but can be flexible especially if they see growth potential in you business. A big 4 audit may also make your supplier feel more comfortable.

 

[Mars]

YEa I got a quote from a freind at PWC... R2K and hour upwards...

I am going to get a temp to capture all the data and then get an auditor to verify it.

 

[Mars]

I work as an auditor at a big 4 auditing firm. The cost of an audit generally depends on the complexity and volume of transactions and also the state of your accounting records. If you have a simple reselling or service business with limited suppliers and customers the amount of time and experience required will be quite low resulting in a lower audit fee.

I would suggest shopping around from both the big 4 and smaller firms. The big 4 are generally more expensive than smaller firms but can be flexible especially if they see growth potential in you business. A big 4 audit may also make your supplier feel more comfortable.

Well, the whole idea of an audit is making them uncomfortable I think. If the audit finds anything wrong then they going to have 100+ other people like me calling for an audit. It will be a major inconvenience for them.
The business is quite complex, takes a few minuets just to describe how it all works.

 

[danlr]

Depends what you want done exactly.

If you pm me your contact details we can have a quick chat, I can determine what exactly is required and give you guidance on what type of audit would need to be done and give you guidance on ball park figures.

Its difficult to determine this without getting a bit more info and happy to discuss over the phone, should you wish to.

 

[Drunkard #1]

Do you mean "statutory audit" or "creditor recon"?

Big difference. The one requires a registered auditor (not all CAs are RAs) to sign the report (for public interest companies), while the other can be done by a BCom dropout. Expect R 1 000/h minimum for the RA or about R 150/h for a BCom graduate. Less if you're using them for more than a week - it's all negotiable.