How much does a company audit cost in the UK?

Our team knows the value of a smooth and effective auditing process. An audit is often considered a necessary evil, so finding the firm that is the right fit for you is an essential step. Not only should you consider compatibility with whom you work with, but the price, like with most things, plays an integral part in your decision.

Audit is highly-regulated and requires strict processes to be followed and detailed documentation to be completed, which means it is a time-consuming and highly-skilled undertaking. Thus, it needs to be compensated as such. If a firm is deliberately lowballing you to get your business, it may, unfortunately, affect the quality of their work or the efficiency of the process and it is likely fees will increase in future. Too high of a price means you may be paying for some unnecessary add on costs.

Accounting and auditing is a £8.8 billion industry in the UK as of 2024. In the UK, all companies require a statutory audit unless they are exempt due to size or parental guarantee. But just because audits are necessary for most companies does not mean they should be an inconvenience. Paying for good accountancy and audit services has many benefits, such as providing key stakeholders with assurance that the financial information is fairly stated, fostering positive relationships with investors, and providing constructive feedback on key business processes and systems.  

There is no menu for audit costs as each auditing is tailored to that specific company. However, all statutory audits must be done in accordance with the International Standards on Auditing (ISA).

It's challenging to establish a set number that audits should be priced at, and every firm will set their prices differently. However, this handy table that shows a typical range of audit fees.

Generally, the price for an audit is determined by the level of work required to complete the audit. Audit fees can vary due to the complexity of the accounts, the number of transactions undertaken by the business, location (including whether the audit can be completed remotely), software access, and whether physical stock or asset verification is required, as well as the size of the entity.

The work involved will be tailored to meet the specific needs of the entity being audited however the general duties of an auditor include:

• Undertaking a detailed risk assessment to determine the risk of material misstatement within the financial statements.
• Reviewing internal controls and systems in order to develop appropriate audit procedures.
• Undertaking substantive testing as directed by the risk assessment
• Ensuring that accounting policies are appropriate and that accounting estimates and disclosures are reasonable.
• Analysing the directors' use of going concern accounting and, based on the audit evidence obtained, determines whether there is a material uncertainty regarding events or conditions that may adversely affect the company's ability to continue as a going concern.
• Assessing the presentation, structure, and content of financial statements, including disclosures, to determine whether they accurately reflect the underlying transactions.
• Communicating with the governance team regarding the planned scope and timing of the audit and any significant findings identified during the audit.
• Documenting all work completed in detail to ensure compliance with ISAs

The larger the company and the higher the number of transactions in the period will increase the amount of work required and cause the fee to increase accordingly.

Caldwell Penn offers a range of high-quality accounting and auditing services at reasonable prices and our team is well equipped to deliver services promptly and efficiently. When it comes to audits, efficiency is key to keeping costs as low as possible. To achieve this, the auditing process needs to be seamless. Some ways to Caldwell Penn ensure this happens include:

• Planning ahead to agree dates and deadlines before you we start.
• Using collaboration software to send and receive all information requests to you in advance of starting work
• Ensuring the accounts are finalised as far as possible before starting the audit, as changes made late in the audit often lead to more work and additional
• Talking you through everything in simple terms without using jargon so that there is no confusion!
• Providing constructive feedback and discussing all findings and areas for improvement soon after your current audit has been completed to ensure that next year is an even better experience.

Auditing can be complicated, which is why our experienced team is here to guide you through the process! While there is no set price for an audit as it depends on your needs, they can ensure that the audit experience is as painless as possible and shareholders in your company have peace of mind that your financial records are reliable, which is definitely worth the cost.

If you'd like to find out more or explore our audit services further, please get in touch, and a member of our specialist team will be more than happy to help.