Audit Fee Calculator (ICAN Guideline)
The ICAN minimum audit fee by type and size of entity, compared with a time-based estimate from daily rates.
1. Type of entity
2. Time needed (optional)
The guideline works from days spent multiplied by a minimum daily rate. Add the people and days you expect for this audit.
The guideline sets a lowest fee for each size of entity as well as the daily rates. The minimum fee is whichever is higher.
Minimum audit fee
How the figure was reached
ICAN minimum audit fee - how it works
The Institute of Chartered Accountants of Nepal (ICAN) recommends that firms with proper quality systems charge at least a set fee. The guideline looks at how complex the work is, the risk, the skills needed, the time spent and market practice. Two figures are compared and the higher one applies:
- Time: the estimated days for each person multiplied by the minimum daily rate for that person.
- Size of the entity: a lowest total fee that depends on the type of entity and its turnover, deposits, loans, premium or income.
Minimum daily rates
| Person | Experience | Daily rate (Rs) |
|---|---|---|
| Partner / proprietor / QC reviewer | over 15 years | at least 30,000 |
| Partner / proprietor / QC reviewer | 11-15 years | 20,000 - 29,999 |
| Partner / proprietor / QC reviewer | 5-10 years | 15,000 - 19,999 |
| Partner / proprietor / QC reviewer | under 5 years | 10,000 - 14,999 |
| Manager or professional staff, ICAN member | 5 years or more | 10,000 |
| Manager or professional staff, ICAN member | under 5 years | 7,500 |
| Registered Auditor | B class / C class / D class | 15,000 / 10,000 / 5,000 |
| Staff of another professional accountancy body | over 5 years / 5 years or less | 5,000 / 3,000 |
| Completed 3 years of article training | 3,000 | |
| Articled trainee | 2,000 | |
| Other audit staff | 1,500 |
Other points in the guideline
- The fees are minimums and exclude value added tax (VAT).
- An auditor should not quote less than the previous year's audit fee unless the entity's transactions have fallen sharply.
- For companies and cooperatives with turnover up to Rs 2 crore, and NGOs up to Rs 50 lakh, the lowest fee depends on who signs: Chartered Accountant Rs 20,000, B class Rs 15,000, C class Rs 10,000, D class and Accounting Technician Rs 5,000.
- For larger entities the calculator shows which size band it used for the lowest fee.
These figures follow the ICAN minimum audit fee guideline (effective from 2078-04-01) as published in a chartered accountant's copy of it. They were not checked against ICAN's own site, and ICAN may revise them - confirm with the current ICAN directive before you quote a client. Whether a professional body can fix minimum fees has also been debated, so treat this as a planning aid. You can also ask Unifour.
Frequently asked questions
Is this fee compulsory?
ICAN issues it as a minimum fee guideline for its members, to protect audit quality and the profession. Whether a professional body can fix minimum fees has been debated, so use the result as a benchmark and confirm the current position with ICAN.
How is the audit fee worked out?
Two figures are compared. One multiplies the days each person spends by the minimum daily rate for that person. The other is a lowest fee set by the type and size of the entity. The higher figure is the minimum.
Does the fee include VAT?
No. The guideline fees exclude VAT. The calculator shows 13% VAT separately so you can see the total with VAT.
What if turnover is very small?
For companies and cooperatives with turnover up to Rs 2 crore, and NGOs up to Rs 50 lakh, the guideline sets a lowest fee by who signs the audit - for example Rs 20,000 for a Chartered Accountant and Rs 5,000 for a D class Registered Auditor.
Where do these figures come from?
They follow the ICAN minimum audit fee guideline (effective from 2078-04-01) as published in a chartered accountant's copy. They were not checked against ICAN's own site, so confirm with the current ICAN directive before quoting a client.