How the estimate is built
The estimate is deliberately simple and every input is yours: hours = base hours × complexity multiplier × readiness multiplier, then the hours are split across roles by the share you set and priced at the rate you enter. Base hours for an entity of a given size come from your firm's own history; the presets are placeholders to overwrite, not benchmarks. The same goes for the multipliers and rates. The tool states no market price and none should be read into it.
Readiness of the books can be a large swing factor, because unreconciled accounts, late schedules and adjusting entries after the first draft add hours at every level. A staffing mix weighted toward senior time raises the blended rate even when hours are unchanged. Planning under AU-C 300 includes the nature, timing and extent of resources, so the output is a starting point for the budget, to be revisited as the risk assessment under AU-C 315 is completed. Under the AICPA independence rules a fee for an attest client cannot be contingent on the result (ET 1.510.001).
Common questions
How are audit hours estimated here?
Hours = base hours × complexity multiplier × readiness multiplier. You choose all three. The base hours are what you would expect for an entity of that size with standard complexity and typical readiness, taken from your own past engagements.
Does this show what audits cost in the market?
No. The tool uses only the figures you enter and does not draw on market data. Any hours, multipliers or rates it starts with are placeholders to replace with your firm's numbers.
What makes audit hours go up?
Complexity (several entities or locations, significant estimates, reliance on controls), a first-year engagement, and books that are not ready: open reconciliations, late schedules, and adjustments after the draft statements. Use the multipliers to reflect each.
How is the staffing mix used?
Total hours are divided by the share you assign to each role, and each slice is priced at that role's rate. If the shares do not add to 100%, they are rescaled so the hours still total correctly.
Can I use the result as a quote?
Treat it as a planning aid. An engagement letter fee reflects the actual scope, risk, deadlines and the firm's own pricing policy, and should be agreed with the client.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.