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What should small company 25 Million Sales Annual Audit Fees be

We are small company who has been with an audit firm for a long period of time.  Easy straight forward annual audit..  Relatively new here and potentially shopping around.  Looking for ballpark... 

Answers

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

There is not one standard audit size and shape. There are too many variables. Why not distribute a RFP and let the market tell you the appropriate costs for the services you provide? Remember to also include your current supplier. If they understand you are shopping around, they may come back with a price that is lower than what they historically required.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Might I add this to Regis' great answer: Who is going to use the audit (or for what purpose). Based on this answer, you may have to add/subtract from the RFP list as those CPA firms may not have the "standing" you need for the purpose you wish to use the audit.

Jill Nickerson
Title: CFO
Company: In Transition
(CFO, In Transition) |

If you've been with the same firm for a long time, it's easy to make the case you need to put the audit out to bid. I can send you the RFP I used in 2008. The cost of the audit depends a lot on the size of the firm. Small/regional firms cost significantly less, but don't have the in house expertise. We're a bit smaller than your company and pay $60k for a big firm.

Anonymous
(Controller) |

We are about $50m in revenue (privately held) but require audit for investor purposes. We pay around $100k for a non-big-4 audit firm.

Topic Expert
Joan Varrone
Title: CFO
Company: Cloud Cruiser
LinkedIn Profile
(CFO, Cloud Cruiser) |

I would look at regional or local firms as they are more cost effective. If you revealed your location you can get recommendations from this forum. I am in the Bay Area and can think of several I would recommend. In addition I would find firms that know your industry as this will make it an easier process.

Aaron Gerstman
Title: Financial Consultant & Advisor
Company: Gerstman Consulting
(Financial Consultant & Advisor, Gerstman Consulting) |

Please remember to add to the RFP (and this is true for any professional service RFP) a requirement for an explanation of the conditions that would cause an increase in the quoted price, hours or rate once the engagement has begun and the negotiation process to address this. And unless your firm requires a big-4 audit, regional firms tend to provide better service and pricing.

Richard Casinelli
Title: CFO
Company: Equity Search, Inc.
(CFO, Equity Search, Inc.) |

I am a CPA and Audit fees are calculated based upon risk factors and the internal controls that need to be tested in the Company. I belong to a network of CPA's and
one of our associate firms could bid on your RFP. Need lasts years financial statements and any management letter prepared or best practicesw letter.

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