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fee negotiations

Sorry for the hiatus, been busy at work. Wanted to link to a really good article in CFO Magazine, this was a link pointed out by a reader. Touches on what I blogged about earlier on budgets, and how Companies now have the upper hand in fee negotiations. This is just not right, and leads to partners cutting fees and costs to be somewhat profitable. The audit teams end up getting affected by this immensely. Not only are our raises not decent, but the budgeted hours we're given to complete audits is absolutely unrealistic. We also end up taking clients we have no business auditing, since the firms have certain basic standards and expectations of clients, and many startups just do not have the accounting staff to achieve and maintain these standards.
This is just a downward spiral, and hopefully, for the sake of the firms, they will gain the upper hand in negotiations in the near future, and focus on actually doing a better job auditing in the near future.
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itauditsecurity said…
The same thing is happening to contractors too, but they are still expected to do excellent work.
July 24, 2010 at 5:48 PM
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