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Getting them for ANY small or mid-size private company might cost between $1,000 and $7,500, depending on the audit firm, geographic location and complexity of the subject business.
Here's a great article on the subject, for some perspective:
You ight even get a one person shop to do it for $500, if they're pretty simple, and you're willing to pull everything together for them
But in NYC, I'd bet you won't get it done for less that $750
Now, this is just anecdotal information, (hearsay) but from http://www.small-business-forum.net/accounting-taxes/2141-avg-price-small-cpa-firm-charge-reviewed-financial-statements.html
"Regional area would be NYC and Washington DC area. I have searched and only found an article from 1995 stating a range from $7,000 - $10,000. I would like to know how much it would cost now for a medium to small CPA firm to perform reviewed financial statements. Maybe around $10K-15K now? or is it the same $7-10K? Also how would a CPA firm price this out? Any ideas or good websites would be highly appreciated!! Thanks..."
He then goes on to say...
Reviewed financial statements provide limited assurance that no material modifications need to be made to the financial statements for them to be in conformity with GAAP or an other comprehensive basis of accounting (OCBOA), such as tax basis.In our opinion on a review, we state exactly what a review is and that, "a review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion."Depending on the nature of your business (service / products), your gross revenues and total assets, the comprehensiveness of your bookkeeping/record-keeping, in addition to your business location, the experience of the CPA, and whether they have expert knowledge in your particular industry will all factor into price.Reviewed financials do differ from an audit, or compiled financials. Banks sometimes say they require audited financials (and a lot of people toss that word around), but the are very expensive. Most banks will settle on reviewed financials, or even monthly/quarterly financials, and reviewed financials on an annual basis. For a rough basis, if a compilation costs X, a review is generally 2-3X and an audit is usually 3-7X. The price variance (2-3 / 3-7) depends on how well the company keeps their records, and whether they need the "works" or not.Sometimes companies need these statements for internal purposes, and do not want a Statement of Cash Flows and/or Notes to the Financial Statement, both of which are requirements by Generally Accepted Accounting Principles. They can be excluded at management's discretion, but it is noted in the accountant's letter. [In an audit, this will result in a QUALIFIED opinion, which can sometimes raise a red flag...]I do not recommend getting compiled, reviewed, or audited financial statements if, other than you, there is no purpose.
I have seen that article.. I too am curious on what the hourly rate is.I have a property management company and I need the audited statements to be submitted to board of directors of a housing community to get rembursed for my expenses and get paid
and here's a good article form e0how on the subject
IC, I really thin it's SO variable, based on the reason you need.... so in your cas a few phone calls to a smaller CPA shop with an axplanation of what you need might be efficient
I have tried that however havent been able to get a clear answer or even a range.
I have a friend in Atl, that is an accounting teacher, that does this kind of thing on the side .... that might be a thought
I can opt out and see if others might be able to help, but in your case, I think the 1000, to 7,000 (just gut here) - probably closer to the 100 will end up applying
Maybe you need to go to them will an offer
"with" an offer Here's what Id be willing to pay for X,Y,Z
sorry for the typos (closer to the 1000...)
hmm.. ok .. based on what I am reading avg audit firm charges 350 - 400/ hr
that woud be correct for CPA in that region, certainly ...
Tax attorney, 500 - 750 +
So this sounds like it could get pretty expensive
There's that 7000 8000 range
Yep, that is one of those where you're paying for the designation (CPA) and they're putting that designation at risk by certifying then numbers.... is what they will say
ok .. thank you for your time.
Wish I could have given you more specificity, you're welcome ... maybe do as much leg work as possible and get a quote based on hours taken ...
ok .. Sounds good. =)
You might lookm at any guidance give by AICPA
Hello and thank you for your question.
I believe Lane has done a good job with your question. I am posting an answer to give you some insight, as I am a CPA, owner of a firm, and someone with experience auditing.
Your initial statement indicating that this is for the Board of Directors tells me right away an audit is not what you need. Good thing.
First of all, you should have procedures in place, aka internal controls, that deter your ability to commit any sort of fraud. For example, if you have the authority to write checks, then someone else such as a bookkeeper that reports to the Board should do the actual bookkeeping. The Board should approve of your accounting system, including your controls over assets, financial reporting, and compliance with regulations. The main point here is that a well designed accounting system is a far better, cheaper, and realistic alternative to obtaining an audit.
Your audit appears to be so you can be reimbursed. Assuming you really did want a CPA to help you substantiate your expenses, an "agreed-upon procedures engagement," and not an audit, would be more appropriate. With such an engagement, the CPA performs agreed upon procedures and prepares a report showing any findings. In your case, the procedures should be designed to substantiate your expenses, so perhaps things like matching payments to third party evidence like bank statements and bills received.
When a CPA performs an audit or an agreed upon procedures engagement, they are subject to professional standards and peer review. It is the red tape and any staff supervision that initially results in high fees. A bookkeeping or consulting engagement, on the other hand, is not going to be subject to peer review and the red tape. Your best bet when it comes to keeping the fees down is to make sure your CPA knows that a bookkeeping / consulting engagement is suitable (perhaps, or as far as I can tell) for your needs.
I hope this is helpful. Thank you again for your question.
After talking to the board, they have requested audited financial statements for 3 properties that I am managing for them.
Most states (mine anyways) have laws that require housing associations to get an audit annually, however, this need not be a certified audit conducted by a public accountant. To be honest, I really do not know how to interpret the meaning of the word audit as it appears in my State's law, other than to suggest that there be some sort of third party, not necessarily an independent party by the way, that reviews the financial records of the Association.
A lot of well meaning Boards will mistakenly ask for this kind of stuff when they do not need it. Make sure they know what they are asking for and why, quite frankly.
While GAAP deviates from its traditional presentation for a housing association, these should still be very easy audits to conduct. You are only talking 48 units. My first job as an intern was to audit subsidized housing communities with hundreds of units, and while we did a lot of them often times for the same management company, we almost always kept the cost to well under $1,000 per complex. This was in Lansing, Michigan.
Currently, I work in a small town and bill my time at a third of what my employers in Detroit did, back when I used to work for someone else. My bid for that many units, give or take a little for specifics, would be between $1,000 and $1,500. The first year an audit is done, there is a bit more leg work, so perhaps as high as $2,500 initially. In future years, some of the work actually disappears, so the price should go down.
Again, I hope this is helpful.