Transparent Pricing: How Fixed Fees Reduce Risk

Pricing should never be the most confusing part of an audit or review.

Yet for many community organisations, clubs, and charities, uncertainty around professional fees creates unnecessary stress — particularly for volunteer committees trying to budget responsibly and meet compliance obligations.

Transparent, fixed pricing exists to solve that problem.

The Problem With Hourly and Estimated Fees

Many accounting and audit firms continue to price work using hourly rates or fee estimates. While this approach may appear flexible, it often shifts risk away from the firm and onto the client.

Under time-based or estimated pricing:

• The final cost is not known upfront

• Delays, incomplete records, or prior-year issues can increase fees

• Committees may approve an engagement without understanding the potential total cost

For volunteer-run organisations, this uncertainty makes financial planning difficult and can undermine confidence in the engagement.

How Fixed Fees Change the Risk Equation

A fixed annual fee reverses that risk dynamic.

With fixed pricing:

• The scope of work is clearly defined

• The fee is known before the engagement starts

• Efficiency risk sits with the auditor — not the organisation

This allows committees to approve an audit or review with confidence, knowing the cost aligns with their approved budget and governance responsibilities.

Fixed Fees and Good Governance

For incorporated associations, charities, and clubs, predictable pricing supports:

• Accurate budgeting and cash-flow planning

• Transparent reporting to members

• Reduced likelihood of fee disputes

• A healthier working relationship with the auditor

In practice, fixed fees allow everyone to focus on outcomes — not invoices.

Are You Comparing Apples to Apples in Audit Tenders?

One of the most common sources of confusion we see does not come from pricing itself — it comes from how tenders are compared.

On the surface, audit proposals may appear similar. In reality, the pricing structures behind them can be very different.

Key differences to look for include:

• Fixed annual fees versus fee estimates

• Clearly defined scope versus open-ended scope

• Annual pricing versus introductory or first-year pricing

• Fees that include planning, reporting, and governance support versus basic compliance only

A low headline figure may seem attractive, but if it is described as an estimate, indicative fee, or investment, the final cost may change once work begins.

A simple question can help committees avoid confusion:

Is this a fixed annual fee for a defined scope — or an estimate that may increase later?

Understanding that distinction is critical to informed decision-making.

What the Law Expects: Clear and Truthful Pricing

In Australia, pricing transparency is not optional.

The Australian Competition and Consumer Commission (ACCC) makes it clear that prices must be:

• Clear and truthful

• Free from misleading impressions or omissions

• Easy for consumers to understand

If pricing can reasonably be misunderstood, the risk does not rest with the client — it rests with the service provider.

Ethical Obligations Under APES 110

Beyond consumer law, accountants are bound by professional ethics.

The APESB issues APES 110 – Code of Ethics for Professional Accountants, which requires that fees and pricing structures must be:

• Fair and truthful

• Clearly communicated

• Free from misleading statements or omissions

• Structured so they do not compromise independence or objectivity

Transparent fixed fees are not just good practice — they are an ethical expectation.

Why Fixed Fees Work Better for Community Organisations

From a governance perspective, fixed pricing delivers practical benefits:

• Committees know the cost before approving the engagement

• Treasurers can budget with confidence

• Volunteers are not exposed to unexpected cost overruns

• Auditors are incentivised to work efficiently and clearly

Most importantly, trust improves when everyone understands the financial arrangement from the outset.

Final Thought

• Hourly and estimated pricing protects the accountant.

• Transparent fixed pricing protects both sides.

When fees are clear, annual, and written in plain English, risk is reduced, trust is strengthened, and organisations can focus on what matters most — meeting their obligations and serving their communities.

• If you are ever unsure how a fee is structured, ask before signing.

• A professional auditor will welcome the question.