Question

Lake View Mental Health Affiliates, a non-governmental not-for-profit organization has contracted William Wise, CPA, about conducting an annual audit for its first year of operations. In discussions with Lake View’s controller certain facts came to light that made William Wise question if a single audit was necessary.

Assuming a single audit is required, explain how that would impact the fee that William Wise should charge for the audit?

Answer 1

*Assuming that a single audit is requiered, hence it would impact the fee as follows:

- William wise must now quote his fees for an annual basis.

- William wise shall have less scope of charging a higher amount as compared to multiple audits.

- As a single audit is to be conducted the scope of his work has increased to ensure all the compliances pertaining to the Acts and Legislatures, hence more of his working hours would give him less fee.

- As this is also the 1st year of the organization he has to start from the basics and check all the legal compliances pertaining to the registration,filling etc for the organization.