How many hours does a typical audit take?+
Highly variable by complexity. A small private company (turnover < ₹10 cr) — typically 100-200 hours. A mid-size unlisted (turnover ₹50-200 cr) — 300-500 hours. Listed with subsidiaries (₹500 cr+ turnover) — 800-1,500+ hours. NBFC / bank branch audits — additional 30-50% premium. Regulatory complexity (SEBI LODR, IFC) increases hours.
What is the typical partner / manager / staff split?+
For a healthy engagement: partner ~15% (planning, review, judgement areas, sign-off), manager ~25% (engagement management, complex areas, review), staff ~60% (execution). For complex engagements, partner / manager percentages can rise to 25-30% combined.
How does the AQMM impact time estimation?+
ICAI's Audit Quality Maturity Model emphasises documentation, supervision, and quality control hours. Firms maturing toward higher AQMM levels typically need 10-20% more hours than firms at lower levels — but recover this in quality and reduced regulatory risk.
Are travel hours billable?+
Industry practice varies. Travel time to client locations is usually included in audit hours (at full or reduced rate); travel between client locations is typically full rate. The engagement letter under SA 210 should specify the basis. Out-of-pocket expenses (transport, accommodation) are typically reimbursed at actuals.
How do I track audit hours?+
Modern audit firms use time-tracking software (CCH, Practice CS, custom solutions) that logs hours by engagement / phase / staff member. SQM 1 requires the firm to monitor engagement performance — time tracking is foundational. ICAI's peer review process expects evidence of time records.
How does technology / automation affect audit time?+
Tools like CORAA (automated journal entry testing, ratio analysis, expectation setting) can reduce execution hours by 20-40% on routine procedures, freeing senior time for judgement areas. The savings typically translate to higher-quality output at the same hours, or same output at fewer hours.
Should EQCR hours be in the audit time estimate?+
No — Engagement Quality Control Reviewer hours are typically tracked separately (the reviewer is not part of the engagement team). For listed entities (mandatory EQCR under SQM 1), budget ~5-10% of audit team hours separately for EQCR review.
How does first-year audit time differ?+
First-year audits typically take 20-30% more hours than steady-state. Drivers: opening balance procedures under SA 510 (independent testing of opening balances if no auditor file available), knowledge-of-business build-up, system walkthroughs, identification of accounting policy issues. Year 2 onwards, the incremental knowledge reduces these hours significantly.
Which companies fall under NFRA jurisdiction?+
NFRA Rules 2018 (Rule 3) cover (a) all listed companies; (b) unlisted public companies with paid-up capital ≥ ₹500 crore OR annual turnover ≥ ₹1,000 crore OR outstanding loans/debentures/deposits ≥ ₹500 crore as on 31 March of the preceding financial year; (c) certain insurance / banking / electricity-generating companies. The "Listed" toggle in this calculator should be treated as a proxy for "NFRA-jurisdiction company" — applying the same +25% adjustment to a large unlisted public company is appropriate.
