A number of factors affect the duration and cost of an audit, such as the size of the company, the number of transactions, and the complexity of accounting concepts. For instance, a car wash business typically has straight forward accounting concepts, but have a high volume of transactions. On the other hand, an investment company typically faces complex accounting concepts that can take longer to audit than the actual transactions themselves.
Regardless of the entity, there are some key factors that can reduce audit fees and the duration of the audit: 1) the accuracy of accounting data provided to the auditors; 2) the strength of the entity’s internal controls; 3) the responsiveness of client personnel to the auditors. With these factors in place, it is much more likely that the audit will be performed efficiently, resulting in a lower cost and quicker delivery.