Quote:
Originally Posted by Unregistered
I don't understand why audit firms don't increase their fees when the clients are using the audited financial statements to achieve their objective like
1. applying for gov grants
2. getting investors to invest in company
3. tendering for project
4. giving to the banks for credit facilities
5. reporting to shareholders
Are the public accountants so dumb to charge so low fees when the clients are making use of the audited financial statements to do so many things.
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They wanted to charge high fees.
But there are so many audit firms around, willing to charge lower fees.
Their main aim is to secure the client as it is revenue to the firm.
If u charge high fees, they will just go find another firm.
This would change if all firms increase the audit fee.
But what would happen? Lower revenue to the client. This would like to higher product prices which will effectively passed on to the consumers.
I think u should think more before asking such questions. These are just how simple business works.