Minimum Audit fee Guidelines (ICAN)

 

Table of Contents

1.       Intoduction. 2

2.       Daily rate for Chartered Accountants. 2

3.       Daily rate for Registered Auditors. 3

4.       Daily rate for Other Staffs. 3

5.       For Listed Public Financial Corporate Bodies. 4

6.       For Life Insurance Companies (based on their Gross Premium Income) 5

7.       For Non-Life Insurance Companies (based on their Gross Premium Income) 5

8.       For Other Listed or Unlisted Public and Private Companies and Other Institutions. 6

a) Having turnover more than 2 Crore. 6

b) Having turnover up to 2 Crore. 7

9.       For Cooperative Organization. 7

a) Having turnover more than 2 Crore. 7

b) Having turnover up to 2 Crore. 8

10.          For National and International Non-Governmental Organization and International Development Partnership Organization. 8

a) Having turnover more than 50 Lakh. 8

b) Having turnover up to 50 Lakh. 9

11.     For entities (other than banks and financial institutions) having main objective of investment and earning investment income from other than investment made in foreign country. 10

1.   Intoduction

The Institute of Chartered Accountants of Nepal (ICAN) has recommended that the professional certificate holder firms, having implemented a structure with minimum standards and carrying out audits and other professional responsibilities, should charge the following minimum fees. The complexity of assignments, risks involved depending on social responsibility, professional knowledge, skill requirements, time spent, and prevailing market conditions and practices have been taken as the basis for the recommended minimum fees. To minimize the risk of affecting adherence to the principles based on the code of conduct of the accounting profession due to charging lower fees than the service provided, and the risk of harming the overall reputation of the accounting profession, it is recommended to determine the following minimum audit and professional service fees applicable to the members of the institute.

2.   Daily rate for Chartered Accountants

 

S.N	Category	Years of Professional Experience	Daily Rate (NRs.)
1	Partner/Proprietor/QC Reviewer	>15 yrs	At least 30,000
2	Partner/Proprietor/QC Reviewer	11-15 yrs	20,000-29,999
3	Partner/Proprietor/QC Reviewer	5-10 yrs	15,000-19,999
4	Partner/Proprietor/QC Reviewer	<5 yrs	10,000-14,999
5	Manager/Professional Staff having membership of the Institute	>=5 yrs	10,000
6	Manager/Professional Staff having membership of the Institute	<5 yrs	7,500

3.   Daily rate for Registered Auditors 

S.N.	Category	Daily Rate (NRs.)
1	B Class	15,000
2	C Class	10,000
3	D Class	5,000

 

4.   Daily rate for Other Staffs

 

S.N.	Category	Years of Professional Experience	Daily Rate (NRs.)
1	Professional Staff having membership of other Professional Accountancy Organizations	>5 yrs	5,000
2	Professional Staff having membership of other Professional Accountancy Organizations	<=5 yrs	3,000
3	Individual with completion of 3 years of Article Training		3,000
4	Articled Trainee		2,000
5	Other Audit Staff		1,500

 

Note: 

a)   This is a minimum fee guideline excluding Value Added Tax (VAT).

b)   The auditor shall not quote Audit fee less than that quoted during last year unless the transaction of entity falls drastically down compared to previous fiscal year.

c)    The total fee for an Audit as per above (per day minimum fee) should not be less than following:

5.   For Listed Public Financial Corporate Bodies

 

S.N.	Higher of Fixed Deposit or Loan	Minimum Audit Fee (Rs.)
1	More than 150 Arab	25,00,000 + (1,00,000 for every 10 Arab exceeding 150 Arab)
2	More than 100 Arab; Up to 150 Arab	25,00,000
3	More than 50 Arab; Up to 100 Arab	20,00,000
4	More than 25 Arab; Up to 50 Arab	10,00,000
5	More than 10 Arab; Up to 25 Arab	7,50,000
6	More than 5 Arab; Up to 10 Arab	5,00,000
7	More than 1 Arab; Up to 5 Arab	3,00,000
8	Up to 1 Arab (Minimum)	1,00,000
9	For “A” Class Commercial Bank	Not Less than Rs. 10,00,000

6.   For Life Insurance Companies (based on their Gross Premium Income)

 

S.N.	Gross Premium Income (Rs.)	Minimum Audit Fee (Rs.)
1	More than 30 Arab	20,00,000 + (2,50,000 for every 5 Arab exceeding 30 Arab)
2	More than 20 Arab; Up to 30 Arab	20,00,000
3	More than 15 Arab; Up to 20 Arab	15,00,000
4	More than 10 Arab; Up to 15 Arab	10,00,000
5	More than 5 Arab; Up to 10 Arab	7,50,000
6	More than 1 Arab; Up to 5 Arab	5,00,000
7	More than 60 Crore; Up to 1 Arab	3,00,000
8	Minimum Audit Fee	Not Less than Rs. 1,00,000

7.   For Non-Life Insurance Companies (based on their Gross Premium Income)

 

S.N.	Gross Premium Income (Rs.)	Minimum Audit Fee (Rs.)
1	More than 10 Arab	12,50,000 + (1,00,000 for every 1 Arab exceeding 10 Arab)
2	More than 7.5 Arab; Up to 10 Arab	12,50,000
3	More than 5 Arab; Up to 7.5 Arab	10,00,000
4	More than 2 Arab; Up to 5 Arab	7,50,000
5	More than 1 Arab; Up to 2 Arab	5,00,000
6	More than  60 Crore; Up to 1 Arab	3,00,000
7	Minimum Audit Fee	Not Less than Rs. 1,00,000

8.   For Other Listed or Unlisted Public and Private Companies and Other Institutions 

a) Having turnover more than 2 Crore

 

S.N.	Turnover (Rs.)	Minimum Audit Fee for Listed and Other Public Institutions	Minimum Audit Fee for Private Companies and Other Institutions established under prevailing laws
1	More than 100 Arab	20,00,000 + (1,00,000 for every 10 Arab exceeding 100 Arab)	15,00,000 + (1,00,000 for every 10 Arab exceeding 100 Arab)
2	More than 50 Arab; Up to 100 Arab	20,00,000	15,00,000
3	More than 25 Arab; Up to 50 Arab	15,00,000	10,00,000
4	More than 10 Arab; Up to 25 Arab	10,00,000	8,00,000
5	More than 5 Arab; Up to 10 Arab	5,00,000	4,00,000
6	More than 1 Arab; Up to 5 Arab	3,00,000	2,50,000
7	More than 60 Crore; Up to 1 Arab	2,00,000	1,50,000
8	More than 15 Crore; Up to 60 Crore	Minimum fee of listed companies	1,00,000
9	More than 2 Crore; Up to 15 Crore	Minimum fee of listed companies	40,000
7	Minimum Audit Fee	Not Less than Rs. 1,00,000	-

 

b) Having turnover up to 2 Crore.

 

S.N.	Member	Audit Fee (Rs.)
1	Chartered Accountants Member	20,000
2	"B" Class RA Member	15,000
3	"C" Class RA Member	10,000
4	"D" Class RA Member	5,000
5	Accounting Technician	5,000

9.   For Cooperative Organization

a) Having turnover more than 2 Crore

 

S.N.	Higher of Fixed Deposit or Loan	Minimum Audit Fee (Rs.)
1	More than 10 Arab	10,00,000 + (2,00,000 for every 5 Arab exceeding 10 Arab)
2	More than 5 Arab; Up to 10 Arab	10,00,000
3	More than 1 Arab; Up to 5 Arab	5,00,000
4	More than 60 Crore; Up to 1 Arab	3,00,000
5	More than 30 Crore; Up to 60 Crore	2,25,000
6	More than 15 Crore; Up to 30 Crore	1,50,000
7	More than 5 Crore; Up to 15 Crore	75,000
8	More than 2 Crore; Up to 5 Crore	50,000

b) Having turnover up to 2 Crore

 

S.N.	Member	Audit Fee (Rs.)
1	Chartered Accountants Member	20,000
2	"B" Class RA Member	15,000
3	"C" Class RA Member	10,000
4	"D" Class RA Member	5,000
5	Accounting Technician	5,000

10.    For National and International Non-Governmental Organization and International Development Partnership Organization

a) Having turnover more than 50 Lakh

 

S.N.	Donation and Other Receipt Gross Income	Minimum Audit Fee (Rs.)
1	More than 60 Crore	10,00,000 + (2,00,000 for every 10 Crore exceeding 60 Crore)
2	More than 50 Crore; Up to 60 Crore	10,00,000
3	More than 40 Crore; Up to 50 Crore	8,00,000
4	More than 30 Crore; Up to 40 Crore	6,00,000
5	More than 20 Crore; Up to 30 Crore	4,00,000
6	More than 10 Crore; Up to 20 Crore	3,00,000
7	More than 5 Crore; Up to 10 Crore	2,00,000
8	More than 1 Crore; Up to 5 Crore	1,00,000
9	More than 50 Lakh; Up to 1 Crore	50,000

 

b) Having turnover up to 50 Lakh

S.N.	Member	Audit Fee (Rs.)
1	Chartered Accountants Member	20,000
2	"B" Class RA Member	15,000
3	"C" Class RA Member	10,000
4	"D" Class RA Member	5,000
5	Accounting Technician	5,000

11.   For entities (other than banks and financial institutions) having main objective of investment and earning investment income from other than investment made in foreign country

 

S.N.	Gross Income (Rs.)	Minimum Audit Fee (Rs.)
1	More than 60 Crore	10,00,000 + (1,00,000 for every 25 Crore exceeding 1 Arab)
2	More than 50 Crore; Up to 1 Arab	10,00,000
3	More than 25 Crore; Up to 50 Crore	7,50,000
4	More than 10 Crore; Up to 25 Crore	5,00,000
5	More than 5 Crore; Up to 10 Crore	2,50,000
6	More than 1 Crore; Up to 5 Crore	1,00,000
7	Minimum Audit Fee	Not Less than Rs. 40,000