How to reduce audit fees?

The audit engagement letter clearly specifies the audit fee and the time frame in auditing. The professional skills applied directly affect the efficiency of audit.
To reduce the audit fee, the clients can consider:

• Comprehensive and Reliable Books
  • The comprehensive receipts allow audit staff to easily trace the relevant documents form the voucher number in the subsidiary ledgers (involving Client Profile Method)
  • The undistributed profit compares with the one in the previous years if the opening number is different from the audited ones.

• Simple and Clear Accounts
  • Choose the appropriate accounts during recording, and make the transaction remarks in subsidiary ledgers detailed and clear.
  • Divide the accounts suitably to avoid too much transactions grouping into a general account (such as accounts payable) or too much accounts due to over-division.
  • Accounting system
  • The accounting policies of clients are in accordance with the chosen accounting standards

• Provide Additional Information for Audit
  • The situation after collecting accounts receivable is useful for confirmation
  • Existence and Recoverability of accounts receivable (Consider impairment)
  • Cooperation and reliability of the accounting staff
  • The accounting staff responds promptly to the questions of auditing staff, and provides relevant documents or audit evidence to make the audit without any further doubts and delay

• Reduce the Risk of Auditing
  • Not too much shareholders (such as more than two)
  • Reasonably explain the change in gross margin
  • No insolvency and insufficient cash flow
  • Early start auditing and finish before the deadline to allow sufficient time of auditing