One of the first questions any finance director asks when considering a statutory audit is: what will the audit fee be? It’s a reasonable question, and the answer is frustratingly simple – it depends. But that doesn’t mean audit costs are a black box. This guide breaks down what drives the cost of a statutory audit in the UK, gives you indicative audit fee ranges, and explains how to get the best value from your accountancy spend.
How much is an audit in the UK? Typical fee ranges
Audit fees vary widely depending on company size, complexity and sector. But here are realistic ranges based on what UK audit firms typically charge for a straightforward statutory audit of a single-entity private company:
| Annual turnover | Typical audit fee range | Notes |
|---|---|---|
| Under £1m | £3,000 – £6,000 | Usually only required if the company is in a regulated sector or a subsidiary |
| £1m – £5m | £5,000 – £12,000 | Most common range for owner-managed businesses exceeding the audit threshold |
| £5m – £15m | £10,000 – £25,000 | Complexity increases with transaction volumes, group structures and multiple locations |
| £15m – £50m | £20,000 – £50,000 | Often involves subsidiary audits, consolidation work and more detailed testing |
| Over £50m | £40,000+ | Depends heavily on sector, international operations and regulatory requirements |
These are indicative audit fee figures for 2025/26 (fees have risen significantly since 2024 across the accountancy profession). Actual audit costs depend on several factors, which we cover below. Some audit firms quote significantly less, but that often means a more junior team, less partner involvement, and a management letter that doesn’t tell you much.
What drives the cost of a statutory audit?
Understanding what makes an audit more or less expensive helps you budget accurately and have a sensible conversation with your auditor about fees.
Company size and transaction volume. A business processing 50,000 invoices a year takes longer to audit than one processing 500. Turnover and balance sheet total are the starting point, but the volume and variety of transactions is what really drives the audit work.
Number of entities. A group audit involving three subsidiaries costs more than a single-entity audit because each entity needs its own set of testing, consolidation adjustments, and inter-company reconciliations.
Sector complexity. Financial services firms, charities, pension schemes and solicitors’ practices all have sector-specific accounting standards and financial reporting requirements. A charity audit involves SORP compliance. An FCA-regulated firm needs Client Assets (CASS) reporting. These add time and specialist expertise to the audit process, and the auditor needs accountancy knowledge specific to your sector.
Quality of financial records. If your trial balance is clean, your bank reconciliations are done, and your working papers are ready, the audit runs faster. If the auditor has to chase information, reconcile accounts, or wait for documents, the cost goes up – even on a fixed-fee engagement, because the auditor will price in the expected delays.
Geographic spread. Companies with multiple offices, warehouses or branches may need on-site visits at several locations. Stock counts at different sites add travel time and coordination costs.
Timing and deadline pressure. If you need the audit completed within four weeks of your year end for bank covenant reporting, the firm has to prioritise your work and may need additional team members. A compressed timetable costs more than a standard one.
First-year vs ongoing. Year one of a new audit engagement involves additional work – opening balance reviews, system walkthroughs, and understanding your business from scratch. Most mid-tier firms absorb this cost rather than charging extra, but it’s worth asking.
Fixed fees vs hourly billing
The audit profession has shifted towards fixed-fee pricing over the past decade, and for good reason. Fixed fees give you budget certainty, remove the temptation for the audit firm to over-service, and align the auditor’s incentive with efficiency rather than hours billed.
At Audit Group, we quote a fixed audit fee before the engagement starts. That fee covers the statutory audit work, the audit opinion, and the management letter. It doesn’t change unless the scope changes – for example, if you acquire a new subsidiary mid-year or the business undergoes a fundamental restructuring.
Some firms still bill on a time basis, quoting an estimate and then invoicing for actual hours. This can work, but it puts the risk on you rather than the auditor. If the audit takes longer than expected, you pay more. Ask upfront: is the fee fixed, or is it an estimate?
Hidden costs to watch for
The audit fee itself is rarely the whole picture. Watch for:
- Scope creep. “While we’re here, shall we also look at…” – ad hoc work that gets added during fieldwork and billed separately.
- Overrun charges. Some firms quote low to win the tender and then charge extras for “additional work arising”. Get the fee terms in writing.
- Non-audit services bundled in. Tax compliance, accounts preparation and advisory work may be quoted separately or bundled. Make sure you understand what’s included.
- Senior staff surcharges. If the audit partner needs to get involved in resolving a technical issue, some firms charge partner time at a higher rate on top of the fixed fee.
- Year-two increases. A low first-year fee that jumps 30% in year two is not a fixed fee – it’s a loss leader. Ask what the fee will be in year two before signing.
How to reduce your audit costs without reducing quality
The single biggest thing you can do to keep audit fees under control is to be well prepared. Auditors charge more when they have to spend time chasing information instead of doing the actual audit work.
Practical steps that reduce audit costs:
- Prepare a complete audit file. Trial balance, bank reconciliations, fixed asset register, aged debtors and creditors, accruals schedules, prepayments, stock records. Have it ready on day one of fieldwork.
- Appoint a dedicated audit liaison. One person in your finance team who handles all auditor queries. This prevents the auditor from asking three different people the same question.
- Deliver information on time. Every day the auditor waits for a document is a day they can’t complete their work. Delays push fieldwork into overtime periods and increase costs.
- Keep clean accounting records. Monthly reconciliations, proper cut-off procedures, and documented accounting policies all reduce the time the auditor spends on basic verification.
- Use technology. Cloud accounting software, automated bank feeds, and digital document management make information accessible to the audit team without constant back-and-forth.
How long does a statutory audit take?
For a single-entity private company with turnover between £1m and £15m, a typical statutory audit takes between five and fifteen working days of on-site (or remote) fieldwork. Planning and completion work adds another three to five days.
The total elapsed time from planning to signed audit report is usually eight to twelve weeks, depending on how quickly you provide information and whether any issues arise during fieldwork.
For larger or more complex audits – group structures, regulated sectors, international operations – the timeline can extend to three or four months.
What is included in a statutory audit?
A statutory audit under UK auditing standards (ISAs) includes:
- Risk assessment and audit planning
- Testing of internal control systems where the auditor chooses to rely on them
- Substantive testing of financial statement balances and transactions
- Review of accounting estimates and judgements
- Assessment of going concern
- Evaluation of the financial statements as a whole for material misstatement
- The auditor’s report (the formal audit opinion)
- A management letter identifying control weaknesses and recommendations
What a statutory audit does not include: a guarantee that the financial statements are 100% accurate (the auditor provides reasonable assurance that they are free from material misstatement), an assessment of fraud (although the auditor must consider fraud risk), or advisory work on tax, strategy or business improvement. Those are separate accountancy services.
Request a fixed-fee audit quote
At Audit Group, we provide fixed audit fee quotes within 48 hours. We’ll need some basic information – your turnover, sector, year-end date, entity structure and any specific requirements. Your accountant or finance director will receive a clear proposal setting out the audit fee, the team, the timetable and exactly what’s included.
No obligation, no pressure, and no hidden charges. Call 0161 832 4451 or fill in the form below.
