Audit Fee Calculator

For businesses, knowing the audit cost before engaging with an auditor is time saving and budget friendly. Vertix Audit Fee Calculator is professionally created under the direct monitoring and supervision of senior auditors to provide fast and reliable estimation of what your statutory audit might cost in the UAE and around the world. The cost depends on various factors, such as, company type, size, revenue, banking profile and choice of audit firm.

You can estimate your audit fee in AED and USD by using the calculator below. The results are generated based on industry-standard assumptions as well as audit pricing trends in UAE.

Note: This is an estimated audit fee based on the information provided. Your actual audit fee may vary based on the factors described below.

Why You Need an Audit Fee Estimate

These estimates are integral for budget planning and used for comparing price differences between various audit firms. Additionally, it can help in:

• Planning your financial year budget
• Comparing prices from Big 4 vs mid-tier firms
• Avoid unexpected overruns in the audit fee
• Specifically, helpful when you have International Reporting requirements, such as, IFRS to US GAAP conversion

How the Audit Fee Calculator Works?

Our Audit Fee Calculator considers some key elements to estimate the fee for audit of your company. The calculator estimates costs directly from our constantly updated database. So, our calculator not only provides you with the estimated cost, but it provides you with the value that is closest to the accurate audit cost. Audit calculator also looks for:

1. Legal Structure: This includes the type of business you are running. The types are Limited Liability Company (LLC), Free Zone Company, Public Joint Stock Company (PJSC), Private Joint Stock Company, Branch office of a Foreign Company, Sole Proprietorships, Partnerships, Civil Company. But why does this even matter? Well, each structure comes with its own set of rules and reporting requirements, so the cost also varies.
2. Company Size: We group companies into four sizes, micro, small, medium and large, mainly according to their annual turnover. And as the size of the company increases, the amount of work for the auditor also goes up, making the fee larger as well.
3. Number of Bank Accounts: The number of bank accounts matters because when a business has multiple bank accounts it means that more transactions will have to be reviewed, multiple bank confirmations will need to be requested and reviewed, and so the cost of audit increase accordingly.
4. Bank Facilities / Loans: If your business has taken any loans, bank overdrafts, or bank facilities, the auditors’ work and audit risk considerably increases. This is because the audit firm now needs to protect the interests of banks too being the lender of money to the businesses. UAE banks maintain a list of bank approved audit firms. Banks generally make it mandatory on companies to use a bank approved audit firm to secure or renew bank loans and bank facilities. If an audit firm does not conduct a quality audit, bank can either downgrade their rating or ban them too in worst cases. This means auditors have to put extra time and care to audit companies with bank loans/facilities which effectively affects the cost of audit.
5. Previous / Ongoing / Requested FTA Audit: When a company has already been audited by the FTA or is currently under review, the auditor’s risk to audit such companies significantly increases. This is because the Federal Tax Authority is involved. Because the FTA is involved and auditors’ work can be examined too by FTA, auditors increase the substantive testing on such companies which affects the audit fee.
6. Audit Firm Type: You can choose between Tier 1 firms (this includes big names like Deloitte, PwC, EY, or KPMG) and Tier 2 and 3 firms (this includes mid-tier and local audit firms). The tier 1 charges more due to its premium services, brand, and expertise. Whereas Tier 2 and 3 firms have competitive rates.
7. Annual Revenue: Annual revenue is the most important factor among all. If the income is on a higher side and material revenue transactions are involved, the substantive testing will increase and third party confirmations and reconciliations might need to be performed also. These factors increase the audit fee. Also, higher revenue generally means the company can afford to pay a better audit fee and so the firms usually determine their fee based on the annual income.

What Is the Average Audit Fee for Small Businesses in UAE?

One thing is obvious and must be understood that auditing charges are not fixed. For most small businesses in UAE, audit fee is generally reasonable. If your company earns between AED 5 to 10 million a year and holds a small group of team, then fee will be around AED 4,000 to AED 15,000. This depends on factors like legal structure, transaction volume, as well as tax compliance needs. Similarly, for complex structures and revenues between AED 20m to AED 50m, the fee can range between AED 20,000 to AED 350,000 depending on audit firm and all other factors explained above.

What Factors Influence the Audit Fee Charged by Accounting Firms?

The primary factors based on which accounting firms determine the audit fees are the size of your company, revenue, and net profit of your company. But these are not the only considerations. Some of the common factors that influence the cost include:

• Transaction volume
• Quality of financial records
• Industry compliance requirements
• Number of bank accounts and loans
• Intercompany or overseas operations
• Regulatory deadlines and special audit requests

Need a Detailed Audit Quote? Let Us Help

For accurate pricing, just provide your business details to Vertix Auditing. Our expert team can prepare a fully personalized audit proposal based on your provided details. Our expertise are not limited to auditing, we also offer a range of services like:

• Statutory Audit and Assurance
• Corporate Tax and VAT Compliance
• Accounting and Bookkeeping
• CFO Outsourcing and Advisory
• Mergers & Acquisition Advisory
• Business Planning & Corporate Restructuring

Frequently Asked Questions (FAQs)

Is Audit Mandatory in UAE?

Yes, in most cases it is mandatory. External audit is generally mandatory for both mainland as well as free zone companies in the UAE, with some exceptions available to certain businesses. For details, refer to our article about audit requirements in UAE.  

Can the Audit Fee Change After Using the Calculator?

Yes, calculator gives the estimated audit fee based on the standard assumptions. The final audit fee may be different if there is a need for additional audit work because of complex transactions, regulatory reviews, weak accounting records, or changes in the agreed audit scope.

How Can I Reduce Audit Fees for My Company in UAE?

Big four generally charge premium audit fee, so you may consider hiring mid-tier or local audit firms because they are generally cost efficient. Always remember to keep the financial records organized and accurate.

Where Can I Find Online Platforms to Request Audit Fee Estimates?

The easiest way to get a precise audit fee estimate in UAE is through Vertix Auditing’s free audit fee calculator. You simply have to enter basic company details and you instantly get an estimated audit fee before requesting a formal quote.

Can I Negotiate Audit Fees with Service Providers in UAE?

The short answer is Yes. You can absolutely negotiate audit fees with the audit firms. Plan a discussion with your audit firm and communicate your budget, give assurance that your books are properly closed, inform them if there are no bank loans/facilities or FTA audits, as all these factors will help reduce the audit fee.