Can auditor charge fees on manhour basis? If yes, what allows it and if no, what prohibits it?
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.
Many thanks for clarifying Sir.