How to Save Money When Hiring an Audit Firm: A Practical Guide for Singapore Businesses
Hiring an audit firm is a necessary investment for many companies in Singapore—especially those that are legally required to conduct statutory audits. But that doesn’t mean it has to be expensive. With a strategic approach, companies can reduce audit costs without compromising on quality or compliance.
This guide outlines practical, ethical, and effective ways to save money when hiring an audit firm, including how to prepare for the audit, choose the right firm, and streamline the audit process.
1. Understand What You’re Paying For
To save money, you must first understand what audit firms charge you for.
Audit fees are generally based on:
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Company size (revenue, assets, number of employees)
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Complexity (number of entities, overseas subsidiaries, industry regulations)
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Time and effort (how long the auditor will take)
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Risk level (higher risk engagements require more testing and review)
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Deadlines (rush jobs often cost more)
Once you understand the components of audit pricing, you can start identifying areas to reduce effort (and thus, cost) for the auditors.
2. Choose the Right-Sized Audit Firm
Not all audit firms are created equal—and neither are their pricing models.
a) Big Four Audit Firms
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Highest fees
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Best for listed companies, MNCs, and regulated industries
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May be excessive for SMEs or startups
b) Mid-Tier and Local Audit Firms
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More affordable
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Still provide high-quality audits
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More flexible with pricing and engagement structure
If your business is an SME, non-profit, startup, or private company, you don’t need a Big Four audit. Choosing a local or mid-tier audit firm can save you thousands of dollars annually, while still meeting ACRA’s statutory requirements.
3. Get Multiple Quotes
It’s always smart to get at least 2 to 3 quotes before choosing an audit firm.
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Ask for itemized proposals so you can compare line-by-line
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Clarify what’s included in the quoted price (e.g. preparation of financial statements, tax filing, etc.)
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Avoid firms that give vague or unusually low quotes — they may upcharge later or deliver subpar work
By comparing multiple firms, you gain bargaining power and can make a more informed, cost-effective choice.
4. Negotiate a Fixed-Fee Agreement
Some firms charge hourly, while others provide fixed fees.
To control costs, negotiate a fixed fee based on the agreed scope of work. This avoids surprises and protects you if the auditor encounters delays or inefficiencies that aren’t your fault.
Be clear on:
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Number of revisions allowed
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Whether additional services (e.g. tax filing, XBRL) are included
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Whether group consolidation or additional entities will incur extra charges
A transparent, fixed-fee agreement gives you better cost control and peace of mind.
5. Prepare Thoroughly Before the Audit Begins
One of the biggest hidden costs in audit engagements is inefficiency—especially when clients aren’t ready.
When the auditor has to wait for missing documents, chase down numbers, or recheck balances, the time (and your bill) increases.
Tips to prepare:
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Complete all year-end reconciliations
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Ensure the trial balance is finalized and accurate
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Label and organize all documents before submission
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Prepare a detailed PBC list (Prepared by Client items) on time
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Assign a dedicated audit liaison in your company
A well-prepared audit file can significantly reduce audit hours, especially for recurring clients.
6. Use Accounting Software with Audit-Friendly Features
Modern cloud-based accounting systems like Xero, QuickBooks, and AutoCount allow for:
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Faster document retrieval
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Real-time ledger access
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Standardized reports and exports
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Clean audit trails
Many audit firms charge less when clients use accounting software because the data is cleaner and quicker to verify.
If you’re still using Excel for bookkeeping, consider upgrading. While there’s an upfront cost, you may save more over the long term in reduced audit and bookkeeping fees.
7. Bundle Audit with Other Services
Many audit firms also offer:
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Tax computation and filing
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XBRL preparation
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Corporate secretarial services
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Bookkeeping
By bundling services with the same provider, you can often negotiate package discounts or reduce duplication of work.
Example: If your auditor is also handling your tax, they won’t need to reconfirm accounting treatments or reformat reports—saving time and cost.
8. Build a Long-Term Relationship with Your Auditor
Frequent changes in auditors create inefficiencies:
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New auditors need time to understand your business
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Prior year adjustments must be re-evaluated
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Documentation has to be re-explained
On the other hand, a long-term auditor:
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Already knows your business structure and risks
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Can plan ahead and work faster
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May offer loyalty discounts or flexible payment terms
Audit continuity helps reduce costs year after year.
9. Be Transparent and Proactive
If there are changes in your business (new subsidiaries, acquisitions, legal issues), let the auditor know early.
When auditors are surprised during fieldwork, they often have to expand their scope, which leads to additional fees. Being upfront helps:
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Reduce the need for extra testing
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Avoid miscommunication
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Align expectations
Transparency saves time—and money.
10. Time Your Audit Strategically
Singapore’s audit “peak season” is typically January to April, when most companies finalize their year-end reports.
During peak periods, auditors are:
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Busier
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More expensive
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Slower to respond
If your company has a non-December financial year-end (e.g. March or June), consider scheduling your audit off-peak. You may enjoy faster service and even lower rates.
11. Avoid Scope Creep
Scope creep happens when the audit expands beyond the original agreement. It may happen due to:
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New transactions not disclosed earlier (e.g. M&A, capital raising)
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Late submissions causing extended work
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Lack of staff cooperation or data quality issues
To avoid this:
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Clarify the full scope at the beginning
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Discuss changes before they’re implemented
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Monitor progress and flag concerns early
Good planning and discipline prevent unnecessary cost overruns.
12. Review the Audit Management Letter
After the audit, your auditor will provide a management letter highlighting control weaknesses or inefficiencies.
Take it seriously.
If you don’t address recurring issues, auditors will need to perform additional testing in future years—resulting in higher fees.
Fix the problems once, and save every year after.
Conclusion
Hiring an audit firm is a strategic necessity—but it doesn’t have to break the bank. With the right approach, you can reduce audit fees, improve efficiency, and still receive high-quality service.
Key Takeaways:
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Choose the right-sized firm for your needs
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Prepare early and thoroughly
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Use cloud-based accounting software
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Negotiate fixed fees and bundle services
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Build a lasting relationship with your audit partner
Audit is more than a compliance task—it’s an opportunity to improve your financial operations. By working smart and staying organized, you’ll not only pass your audit smoothly, but also save money in the process.