Recommend A Cheap Auditor

Hi

I posted earlier, explaining how I lost my Audit Exemption for my company as I sent my B1 Form in late.
I'm the Sole Employee of my own company, selling advertising.
The brother of a friend of mine is a Sole Practitioner & I sit down with him for several hours at the end of each year to tidy up the accounts which I keep on Sage. He's a good guy, understands my business fully & is always great with advice etc.
His business partner is an auditor. He's given me a quote of 3K to get the accounts audited.
I'd like to be sure that this price is the norm. If anyone thinks I can get it done for cheaper, I'd be interested to hear. From reading previous threads it seems like lower than the norm. At the same time, the accounts are all in order from my previous sitting. While I'm sure that the there are a load of rules 'n regulations associated with getting an audit done, I'd think that my set of accounts are as straightforward as can be.

It seems a reasonable price. preparing the accounts is the easy part. It's the audit that takes up the most time. This is an indepth look at the company as a whole. If the auditor signs off on your audited accounts and something comes to light that he should have noticed in the audit he can be responsible. my advice is get the audit done asap and make sure you keep the audit exemption in future. It's also worth knowing that because you are late with filing b1 this year next years accounts have to be audited too.

I would not think €3K is expensive for Audited accounts. If this person comes via recommendation from someone who is competent and you are satisfied with their service, I would think you would be mad to go down the route looking for "cut price" auditor.

Fair enough guys - I'm just annoyed with my own stupidity - it's not like I'm getting anything of real value for my 3K. Looks like I'm taking the hit.

I would be surprised if IT Contractors are paying as much as €3k for their audit if they have clean accounts.

Brendan

BobbyFowler said:

Fair enough guys - I'm just annoyed with my own stupidity - it's not like I'm getting anything of real value for my 3K. Looks like I'm taking the hit.

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You will need audited accounts if you want to raise money.
You will need audited accounts if you want to sell the business.

hhhhhhhhhh said:

You will need audited accounts if you want to raise money.
You will need audited accounts if you want to sell the business.

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Agreed but the question is how much that service should cost.

BobbyFowler, how many transactions are in your accounts each year?
If, for example, you get paid once a month, pay yourself once a month and have a few other purchases each year then I think that €3'000 a year might be high.

I had a quick look through my bank records & reckon there's on average of 15 transactions in & out of my company account each month. I've no assets apart from a laptop & a digital camera. I don't hold stock. I work from home & my turnover was 160K in 2007. My accounts really are that straightforward.

Does the 3k include VAT?

You have mentioned on other threads that you are in the process of selling this company to a third party.

http://www.askaboutmoney.com/showthread.php?t=77740

A company audit is always inherently problematic and risky for the auditor, where the client company is being sold or is about to be sold.

The purchaser of the company may have recourse against a former auditor of the company, if they discover at a later stage that the respective values of assets or earnings have been exaggerated, or outgoings or liabilities have been suppressed, in the years prior to the their purchase of the company, unless all such irregularities are (i) found; and (ii) fully disclosed in the audited accounts.

Any failures in this regard on the part of the auditor may not necessarily expose them to an actual liability, unless the purchaser can show that they have relied on the audit report as part of their decision to purchase the company, but they could more likely drag the auditor into difficulties with their professional regulators and insurers.

Most auditors would not touch with a bargepole such new-client audit assignments where a company is being groomed for sale. You are probably lucky enough to have sourced an auditor that will take on the case for you.

I'm at the advanced stage of the Sales Process - that's why I needed this like a kick in the chops! I haven't raised it with either parties. I'm sure that their accountants are going to seek this information soon anyway. I don't see it as a deal breaker - from speaking to others this is a common occurance. It's more a hassle I don't need at this time.