Audit pricing is the first thing businesses consider when fulfilling their tax settlement obligations or publicly disclosing annual financial statements as required by law. Law on Independent Auditing No. 67/2011/QH12Determining appropriate fee levels not only helps businesses optimize operating costs but also ensures the quality of services provided by professional auditing firms.
According to data from professional associations (VAA, VACPA), the demand for audit services is growing by approximately 151% annually due to stricter post-audit policies. To meet this demand... Circular No. 70/2015/TT-BTC Regarding ethical standards, audit pricing should be based on transparency regarding time and expertise. Below are the details to help you understand the components of audit fees.
Legal basis for determining current audit pricing.
Businesses need to understand the legal framework to assess the reasonableness of service fees. Determining audit quotes must strictly adhere to the common standards of the Vietnamese auditing industry.
Regulations stipulated in the Independent Auditing Law 2011
According to Article 55 of the Law on Independent Auditing, the service fee is agreed upon by the client and the auditing firm in the contract. This fee is based on the content, scope of services, time of execution, and the qualifications of the auditor. An audit quote that is too low often carries risks regarding professional quality and legal validity.
Vietnamese Auditing Standards (VSA)
VSA Standard 210 requires parties to clarify service fees from the pre-transaction stage to avoid disputes. Audit quotes typically include direct fees and related costs such as branch office expenses. This ensures transparency and protects the financial interests of both parties involved.
Factors that directly impact audit pricing
Each type of business will receive different financial recommendations based on its specific operations. Audit firms will send you separate audit quotes after conducting an on-site survey.
Total assets and revenue
Businesses with large revenues and tens of thousands of documents require more time for reconciliation than smaller businesses. Auditors usually base their audit quotes on the number of samples to be tested. The larger the asset size, the higher the responsibility and professional risk of the auditing firm.
Number of transactions generated
The manufacturing and construction sectors typically have more complex accounting processes than purely service industries. Inventory management, contractor debt reconciliation, and work-in-progress cost calculation consume significant resources. Therefore, audit rates for these sectors are usually higher than the market average.
Quality of the internal control system
A good internal control system and clean data allow auditors to reduce the number of detailed review procedures. Conversely, if the data is chaotic, the audit firm is forced to increase the audit quote to mobilize additional personnel to review for errors. The quality of the accounting records plays a key role in fee negotiation.
Reference audit price list
The table below summarizes average fees based on revenue size for business reference. The official audit quote will depend on the detailed survey results from the audit expert.
| Revenue size (VND) | Average audit price (VND) | Execution time (Estimated) |
| Under 20 billion | 15,000,000 – 25,000,000 | 5-7 days |
| From 20 to 100 billion | 25,000,000 – 50,000,000 | 10-15 days |
| From 100 to 500 billion | 50,000,000 – 120,000,000 | 15-25 days |
| Over 500 billion | Agreement by scope | Over 30 days |
Receiving a detailed itemized audit quote makes it easier for the chief accountant to explain the costs to the Board of Directors. The reasonableness of the cost always goes hand in hand with the quality of the final report.
See the detailed article here: Audit service price list
Cost analysis in audit quotes: What's inside?
A professional service fee report typically clearly breaks down the constituent cost components. Businesses need to understand these components to assess the true value of the audit quote.
Professional Fees
This is the compensation paid to Certified Public Accountants (CPAs) and assistants based on the expected number of working hours (Man-hours). In cost optimization, receiving an audit quote that clearly specifies the number and level of personnel involved is crucial. This demonstrates professionalism and a commitment to quality.
Administrative and reporting costs
This includes printing, document delivery, and licensing fees for specialized audit software. Typically, administrative fees account for approximately 5-10% of the total audit quote. Although a small percentage, this demonstrates the audit firm's attention to detail towards its clients.
Travel and accommodation costs
For businesses with factories located in industrial zones far from the city center, additional travel expenses will be charged. Businesses can either cover this portion themselves or include it in the overall contract for easier cash flow management. This fee should be clearly stated in the initial audit quotation.
Benefits of businesses receiving reasonable audit quotes.
Choosing excessively low fees can lead to risks regarding the quality of the audit. A reasonable audit quote coupled with quality service will provide significant added value to the financial system.
Early detection of tax error risks
The auditor advises on non-conformities according to Circular 200/2014/TT-BTC or Circular 133/2016/TT-BTC. By accepting a commensurate audit quote, you are buying peace of mind before tax audits. Expert knowledge helps businesses avoid heavy administrative penalties.
Strengthening trust with partners and banks.
Bank loan applications always require financial statements audited by an independent firm. A reputable firm with transparent auditing fees makes a company's profile more credible. This creates a significant competitive advantage when the company participates in bidding or seeking investment capital.
The process from survey to sending a professional audit quote.
A standardized workflow helps ensure that the cost accurately reflects the actual workload. Both parties need to cooperate closely from the outset to obtain the most accurate audit quote.
Step 1: Gather information and conduct a preliminary survey.
The auditing firm requires the business to provide a provisional balance sheet to assess its size. Based on this data, the expert will analyze the volume of documents before preparing the audit quote. This step helps the service provider understand the specific industry characteristics of the client.
Step 2: Risk analysis and scope determination
If the business has related-party transactions, the audit quote may include a review of records in accordance with Decree 132/2020/ND-CP. Clearly defining the scope from the outset helps avoid additional fees later. Experts will propose optimal solutions for each specific risk area.
Step 3: Negotiate and finalize the contract.
After agreeing on the audit price, both parties proceed to sign a formal economic contract. This is the most important legal basis protecting the rights of the business during the implementation process. The contract also clearly defines responsibilities and the deadline for issuing the final audit report.
Things to consider when comparing audit quotes between different firms.
Comparing service fees between companies should be based on consistent competency criteria. Don't just look at the final number in the audit quote and ignore brand reputation.
Check professional licenses
Ensure that the firm submitting the audit quote is on the list of qualified firms published by the Ministry of Finance. Hiring an unqualified firm will render the audit report legally invalid. Businesses should carefully check the qualifications of their partners before signing any agreement.
Assess the reputation of the practicing auditor.
The person signing the report should be a highly experienced expert in your field. Sometimes, a higher audit quote signed by a leading expert will thoroughly address complex issues. In-depth knowledge of tax and governance is the real value you receive.
Optimize audit quotes through bookkeeping improvements.
Businesses can proactively reduce service fees by properly preparing the necessary documentation. This helps reduce the auditor's workload, thereby optimizing the audit quotation.
- Document systematization: Arrange invoices and contracts in chronological order, with clear accounting codes.
- Reconcile accounts payable for account 100%: Complete the signing and confirmation of the accounts receivable and payable reconciliation statements with customers and suppliers.
- Self-assessment of taxes: Correct fundamental accounting errors before the audit team begins its actual work.
Conclude
An audit quote is not simply a cost, but an investment in the transparency and sustainability of the business. Understanding how the cost is structured helps managers make informed decisions and comply with legal regulations. A quality audit service is a leverage point for businesses to confidently thrive in a competitive market.
Besides independent audits, businesses need to focus on building internal defense systems. MAN – Master Accountant Network provides this. auditing services In-depth expertise helps you control risks and optimize accounting processes. Contact us today to receive the most comprehensive management solution for your business.
Other services
- Financial statement audit services
- Internal audit services
- Internal Control System Assessment Service
- Auditing services on request
- Professional tax audit services
- Construction auditing services
- Completed project settlement audit service
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Audit Quotations
Why are the audit fees quoted by the Big4 firms so much higher than those of domestic firms?
The auditing fees charged by the Big4 firms reflect their international brand and rigorous quality control processes. Reports from these firms are highly valuable to foreign investors.
Does the audit quote include the fee for auditing the final accounts of the completed project?
Usually not. These are two separate services with different implementation processes. Businesses need to request separate audit quotes for each specific purpose.
Can a company change its auditing firm after receiving a quote?
Absolutely. Businesses have the right to compare multiple audit quotes to choose the firm with the best capabilities and cost-effectiveness. The final decision rests with the business owner.
