Auditing is a means of evaluation of the effectiveness of company’s internal controls which is very important for achieving goals of a business. This makes auditors’ contribution to a company’s audit system a very valuable one.
Due to the changes in the regulations over the years, the way auditors govern only depicts that cost of carrying out standard audit work has increased. This means it is applied for all sizes of company and some of them view it as increasing regulatory cost.
Even though an audit can take place at some point of time, you can still do a lot to avoid unnecessary audit fees.
I have listed down six ways that can help to keep you minimise audit fees.
1. Developing an audit plan
You need to hold a planning meeting between the Financial Director and the auditors to address issues that have risen during the year. At this point of time, providing essential information is very important. If you don’t and the auditor later on finds out issues that hadn’t been planned for, it will only increase the additional costs.
2. Making a timeline
The purpose of a timetable is to make the process efficient. That is why you need to make a realistic timetable between all parties so they can stick to it. While making a one, do consider holidays and the availability of finance staff and directors.
3. Trial balances should be final
Make sure to send the final trail balances to the audit team at the planning stage. As the adjustments after the planning will require changes to the audit, it will reduce the efficiency of the audit. Even if you need to prepare statutory accounts for the audit team, send a correct one so that the auditor can review it fast.
4. Prepare a complete file for the audit team
The audit team will want a list of information from you. Thus, be prepared with a complete audit file having all those required information before their fieldwork visit.
5. Be present during fieldwork and answer queries
When audit team comes for fieldwork visit, make sure your important staffs are available to assist them. But, even after the review has been completed, further queries can be asked by the audit team. Do not delay in answering their questions as delaying may only result in expensive staff for clearing the outstanding matters.
6. Signing off accounts
Before you close the meeting, review final draft statutory accounts and deal with the queries properly. This will help you to avoid other subsequent meetings which will only result in additional costs and delays. After the final meeting, have the directors and auditor signed off accounts.
After the accounts are signed off, have discussions with the audit team what needs to be improved for becoming more efficient next year.
