audit Staff asked 9 years ago
Can auditor charge fees on manhour basis? If yes, what allows it and if no, what prohibits it?
2 Answers
Ravi Staff answered 9 years ago
Hello Huzefa, audit fees is generally computed on the basis of estimated manhours, which may be altered on the basis of actual manhour. It is regular practice in Big 4 and many other audit firms. It is way of estimating and finalising audit fees. Its perfectly fine. We cannot call it contingency or dependent on outcome or result.
Huzefa Dhamangaonwala