Join our investing community

Auditing Informations - Assistance

Discussion in 'Accounting, Tax & Legal' started by buzzlightyear, 1st Dec, 2007.

  1. buzzlightyear

    buzzlightyear New Member

    Joined:
    29th Oct, 2007
    Posts:
    3
    Location:
    Melbourne
    Ok, this is a strange request.

    For all those auditors out there, what trends are you seeing in fees?

    Are there pricing differences between

    * capital cities in Australia
    * industries
    * size of client
    * how is globalisation reducing costs (if at all)
    * regulatory impacts on governance / compliance
    * shortage of auditors/ skilled personnel

    Of course, I am doing a bit of research myself.

    Why I am asking you ask? Well, I was asked to come back to a Finance Director with some negotiation strategies and market intelligence around the fee environment and the posible mitigation of any proposed fee increases. And I know little about this area.

    Trying to become an expert over the weekend for some feedback to him on Monday :eek: Thanks
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    u have seemed to have got it most of the head...

    about a 20% difference between auditors between different states... (ie sydney compared to SA) even melborune is cheaper than Sydney...

    Huge shortage of CA or CPA qualified accountants and thats why they demand such big money. However on an junior level there is plenty of staff...

    Size of client = bigger accounting firm (becasue of reliance on internal audit systems and smaller firms usually struggle to test these)

    It seems that your boss should be employing a consultant to give this research, not a normal employee who doesnt have the knowledge or skill set to be away of industry trates...
     
  3. buzzlightyear

    buzzlightyear New Member

    Joined:
    29th Oct, 2007
    Posts:
    3
    Location:
    Melbourne
    DaveA, too true, however many thanks for your reply. It will be helpful...
     
  4. taxstar

    taxstar Active Member

    Joined:
    9th Nov, 2007
    Posts:
    25
    Location:
    Sydney, NSW
    If your finance director is that concerned about cost, you may want to put this out to tender and let the competitive market determine the price.