The cost to have audited financial statements prepared for your business depends on different factors. The type, complexity and size of your business are key factors .Since each business is individual, the average cost is difficult to determine. The cost is primarily determined by the amount of time required to complete the audit.
Financial statements are documents that provide important information on the financial position of a company or organization. Companies provide these statements to owners, management, investors and other interested parties. These statements contain a wide range of information, including a detailed listing of assets, liabilities, income and expenses. Financial statements also include supporting documentation, explanatory notes and an opinion on the accuracy of the financial records. Audited financial statements must be prepared and certified by an independent Certified Public Accountant (CPA).
Three types of CPA prepared statements are used. Your CPA can prepare compilations, reviews or audited statements. With all three, accountants certify that financial information is presented according to generally accepted accounting principles (GAAP). However, compilations and reviewed statements do not offer the same certifications found in audited statements. In terms of assurances, a compilation is lowest and a review is in the middle. Audited statements provide the highest level of assurances and certifications.
Your CPA will request a wide range of financial documents to prepare audited statements. These documents include budgets, bank statements and invoices The CPA thoroughly reviews, verifies and examines your records. The audit is based on the results of this examination. In the report your CPA gives an opinion on the accuracy of your records. An unqualified opinion means your records fairly represent the financial condition of your business. A qualified opinion indicates the auditor believes certain aspects of your supporting information are inaccurate.
Accountants do not have a standard schedule of fees for audits. CPAs use their hourly rate to calculate the fee based on the amount of time needed to complete the assignment. Most CPAs establish hourly rates based on their level of expertise and location. CPAs associated with large well-established firms can also command higher fees. The time required to complete your audit will be directly related to the complexity of your business. Therefore, the cost for audited financial statements may also vary according to industries and types of businesses.