What is a reasonable internal audit cost, including the total internal and external
Internal Audit Cost
Answers
Internal audit cost is difficult to pin down, it depends on many variables such as volume, type of business (even restuarant business can be segregated), degree and type of computerization, etc.
External costs are more market based driven, as well as sales, services provided (reviewed financials/audited - no one bothers with compilations any more, industry, etc.
So, Mr/Ms Anonymous, can you give us some more specifics?
It's a general question so a general answer would be helpful. I was thinking about 2% of sales with a range of 1.5 to 3%. Do you think that would cover most situations?
For one restaurant, assuming family business and not a chain, a full time bookkeeper or accountant should be hired – salary could be benchmarked by looking at the adds on
Why would accounting charges ever be determined as a percentage of revenue, unless you are trying to determine what to charge a client that is in the restaurant business? Most of the time, fees are determined by services rendered, not the success of the business.