How to figure out audit fees and tax preparing fees

[Ballscientist]

In the real estate industries, a company has $4 million revenues each year. How can I figure out the audit fees and tax preparing fees?

[Bees Knees]

Most would charge an hourly fee for their time.

[Jiggers]

Audit Fees

Plus travel time and mileage rate. Plus copies, postage, etc.

[ballscientist]

a proposal from aCPA firm in San Francisco:

Tax preparing fees + Audit fees = $20,000

The cost is too high?

[Bees Knees]

It depends. How much time is involved?

[outwest]

Could be..

a proposal from aCPA firm in San Francisco:

Tax preparing fees + Audit fees = $20,000

The cost is too high?

A real, full on audit in California (observe inventory, new fraud detection rules, full GAAP disclosures, etc.) and corporate tax return with moderate complexity. Probably, not a real tight accounting system to audit, so you have to look closer. Yeah I could see it.

In my opinion though, the client has to decide if the cost/benefit ratio is worth it. Who needs the audit? Would a review (a lower level of service) suffice?

One of the fallouts from Euron etc is that more is expected of auditors, which means more work, more risk, and higher cost.