No. They vary widely in scope and depth. Consequently, the proposed cost to perform audits by competing firms can vary widely based upon the anticipated effort required to complete their specific set of procedures (scope). Competing firms are often asked to propose their “own” scope (which is subjective) and the related price to perform such audit would be predicated upon “their” scope. These different scopes usually result in great price disparity. If competing firms were given a “fixed” or “specific” audit program (scope), we believe the disparity between prices would be less.
Asking competing firms to provide pricing for a fixed audit scope may result in a mixed blessing because many organizations rely (and rightfully so) on the experience and recommendations of the competing “expert” service providers. Simply performing a set of “standard audit procedures” or following a “generic audit program” does not guarantee effective audit results.
It is equally important that the audit specialist has the appropriate experience and business acumen to discern what procedures may or may not be appropriate in the circumstances and to provide strategic advice to management in the execution of an audit. Eventually, it often boils down to either what approach or what firm an organization feels most comfortable with. But, to infer that all audits are the same, that all service providers are equal or that all auditors possess the same experience and skill set would be shortsighted.
