About some problems of pricing of audit services

Abstract

Object: To reveal the problems of dumping in the market of audit services, as well as to identify topical issues of pricing of audit services. Methods: Deconstruction, axiomatic, apperception, statistical methods of analysis, including correlation and regression method. Results: Three blocks of issues related to labor intensity and the establishment of the minimum cost of a person – hour are identified. The main methods of pricing and forms of payment for audit services are established. It is revealed that such factors as the number of audit subjects, the number of clients, external quality control of work do not affect the volume of audit services rendered in the Republic of Kazakhstan according to data for a decade. Conclusions: To establish optimal prices, it is necessary to abandon the traditional cost approach, in which overhead costs and profit margins are added to the cost price, after which the price is set. One should focus not on costs, but on the value and benefits received by the client. Also, it is necessary to get acquainted in more detail with the client, with the problems to be solved, with the deadlines that will be required to perform the services. Dumping should be avoided, as the auditor may lose face in the professional community, get the image of a “cheap auditor” and will forever remain with low prices. The price reduction will not bring new customers, but will move the auditor to a cheaper segment. One should not make significant discounts, as customers may perceive this as a consequence of a deterioration in the quality of the service