Cost of an audit in Finland – what determines the fee?
An audit fee reflects the amount and complexity of work. Learn what shapes the cost and how your company can prepare efficiently.
The cost of an audit depends above all on the amount and complexity of the work involved. Turnover alone therefore does not tell you how much a company's audit will cost.
Two similarly sized companies can require very different amounts of audit work. Reconciled accounts, orderly documents and a straightforward business can make the process efficient. Several companies, large inventories, complex contracts or unusual corporate transactions generally increase the work required.
What determines the audit fee?
1. Company size
Turnover, total assets and the number of transactions affect the scope. A larger business usually has more areas and documents to examine, but size alone does not set the fee.
2. Business complexity
The workload for a simple service company may differ substantially from that for a business with projects, inventory, multiple locations or international transactions. Factors include:
- inventory and stocktaking;
- multiple banks or financing arrangements;
- group structures;
- construction or project work;
- corporate transactions;
- overseas transactions; and
- significant estimates and accruals.
3. Quality of the accounts and financial statements
It matters whether the material is ready when the audit starts. Reconciled bank accounts, ledgers and balance-sheet items, with supporting documents readily available, usually help the work proceed smoothly. Repeated requests for missing documents or numerous accounting discrepancies add to the workload.
4. Availability of documents
Digital accounting does not automatically make an audit inexpensive, but well-organised electronic material reduces unnecessary manual work. JTT aims to request documents clearly in advance. Our audit document request lists help clients prepare.
5. The first audit year
A new auditor must learn about the company, its processes, contracts and financial history. The first year can therefore take more work than later years, when these matters are already familiar.
6. Timing
A very tight deadline can complicate resourcing. Agreeing the timetable early and supplying documents as planned usually helps the audit run efficiently.
So how much does an audit cost?
Because the workload varies, JTT prepares an individual quote based on the company's size, activities, material and any circumstances that widen the audit scope. Ordinary telephone and email consultation during the financial year is included without a separate charge. More extensive, separate investigations can be agreed separately.
How can a client influence the cost?
The audit cannot be reduced below the level required by good auditing practice. Good preparation can, however, reduce time spent clarifying documents:
- keep the accounts and ledgers reconciled;
- supply requested material as completely as possible in one go;
- make board and general-meeting minutes and contracts available;
- explain unusual transactions in advance;
- agree the audit timetable early; and
- nominate someone who can answer questions about the material.
What should you compare in quotes?
A price alone does not describe the whole service. Check:
- whether the fee is fixed or based on time spent;
- what is included;
- what additional work is billed separately;
- who the responsible auditor will be;
- the promised timetable; and
- whether ordinary contact during the year costs extra. JTT does not charge separately for ordinary contact.
Unsure whether an auditor is needed at all? Read about Finnish audit thresholds and choosing or changing an auditor.
Request a quote from JTT
To prepare a quote, we need a few essentials: industry, turnover, total assets, staff numbers, accounting system and any special circumstances that expand the audit. Requesting a quote is non-binding. We can also agree how the first audit would work. Explore our audit services or get in touch.
