How To Reduce Your Audit Fee ?
Accounts are audited by experienced and technically trained individuals in accordance with different rules. Professional accountants audit the accounts records, which are then approved by the relevant authority.
By AZIZAM AZIZAN
We expect the audit fee to increase over time due to high inflation and the difficulty of finding eligible employees in Johor Bahru, Johor, Malaysia; hence, we recommend the following methods to assist you in monitoring the audit fee increment:
TIPS TO REDUCE AUDIT FEES
1. Using up-to-date and dependable accounting tools
We’ve seen that auditing accounts with manual bookkeeping (handwritten or excel spreadsheet) takes three (3) times as long as auditing accounts with accurate and up-to-date accounting tools. As a result, accounting software will assist you in more than just handling your company. It also reduces the workload of the auditor, resulting in a reduced audit cost.
2. Documentation that has been thoroughly prepared
Auditors spend a significant amount of time looking for records that justify their fair confidence that the Company’s financial statements as a whole are free of material misstatement. As a result, well organized reporting would undoubtedly assist auditors in reducing their workload and time usage.
3. Internal monitoring can be improved
Internal control improvements may have a positive impact on the time and expense of external audits. Since it is less costly to hire your own employees than it is to pay theirs, improving organizational management yourself is preferable to waiting for an expensive audit in the end. Ask your external auditor what procedure changes they think will maximize their ability to focus on your internal monitoring if this figure isn’t increasing.
4. Recruit knowledgeable personnel
Audit fees will be reduced by including well-trained business personnel in the audit. It’s much safer that the team has auditing experience; this would ensure that the audit goes well and that the audit fee is lower.
5. Auditor queries are responded to quickly
To finish the job on schedule, an inspector must work as quickly as possible. This is one area where the corporation and its auditor are concerned with the same thing. The auditor, like the firm, is eager to complete the audit. When an auditor’s work is stalled as he or she waits for a few questions to be resolved or insufficient paperwork to be dealt with, it’s aggravating. Quick answers to auditor requests help to create confidence, while lengthy delays in receiving requested materials and paperwork can make an auditor who is already suspicious become even more suspicious. It would save time if the customer responds quickly and the job is done quickly, and the audit fee will be minimized as well.
6. Auditors have access to information
The proper approach to deal with a controversial accounting matter is for the CFO and controller to alert the auditor to any irregular or questionable accounting treatment early in the audit. They will then address and overcome the problem as a group. If financial officers respond specifically to the auditor’s concerns, rather than attempting to conceal anything or obscure the topic, the customer is more likely to receive equal treatment.