By Leslie Evans, Executive Director
Understanding the Rising Cost of Audit Services
We understand that our clients are concerned about the rising cost of audit services. The Federation shares these concerns and is actively investing resources to find more efficiencies. However, we are also battling increased standards and regulations through Chartered Professional Accountants (CPA). Your auditor has to work through new “standards of quality management.” For example, the new standards require auditors to include assessing your data security as part of their audit. In addition, inflation has seen significant increases in cost of insurance, staffing and software related to the delivery of our audit services.
Here are some other insights that might help you understand the current environment:
1. Increased Compliance = Increased Workload for Every Audit
Recent changes in CPA standards and audit regulations have significantly increased the amount of documentation and testing required during audits. These are industry-wide mandates aimed at ensuring transparency, accountability, and long-term sustainability for all organizations. All audits in Canada must follow Canadian Audit Standards (CAS) as issued by Auditing and Assurance Standards Board (AASB). There is zero flexibility for licensed firms to “scale back” procedures — even for non-profits. CPA reviews your auditor for CAS compliance, regularly. Failure to comply is a professional risk where they could lose face disciplinary action or even lose their designation.
2. Most Audit Files Require Extensive Correction
In over 90% of audits we perform, we uncover material misstatements that must be corrected to ensure compliance with non-profit accounting standards. This means we’re not just examining your financial data — we’re actively helping prevent financial inaccuracies that could lead to serious consequences.
3. The Cost of an Audit Reflects the Reality of the Work
While we aim to provide affordable audit services for non-profits, correcting major financial issues significantly increases the time and expertise required to complete an audit. We approach this work thoroughly to protect your organization’s integrity and compliance but also to meet national auditing standards. We cannot cut corners — the audit process is regulated.
4. You're Getting More Than an Audit
What we provide often goes well beyond a traditional audit. We help clients correctly report using non-profit accounting standards, clean up financial records, create schedules, produce initial financial statements to be audited and meet governance standards — services that for-profit firms won’t offer, or otherwise charge much more for. We are experts in non-profit and charitable audits.
5. Our Goal Is to Reduce Audit Costs Over Time
We’re working toward a future where your audits are cleaner and faster. With the right training, preparation tools, and year-round support, we can help your team improve internal financial processes and reduce audit-related costs. These tactics will involve helping you improve your record keeping and preparation for audit.
6. We Keep Costs as Low as Possible
Despite increasing requirements, we do not pay our staff market rates and continually look for ways to keep our services affordable. We are committed to providing high-quality audits at the most reasonable cost. We have, for city partners, leveraged a subsidy to help with the rising cost of audit services. We will need to renew this subsidy at the end of 2026.
7. You’re Not Alone — This Is an Industry Shift
These changes are not unique to us or to your organization. Non-profits across the country are experiencing similar increases in audit time and complexity due to updated standards. For example, our organization’s audit went from $11,500 to $22,500 in 2025, alone.
8. This Is a Partnership, Not Just a Financial Audit
We understand that rising audit costs are a challenge — but we also know the risk of under-reporting or errors can be even greater. We don’t just conduct audits — we help your organization meet its financial responsibilities with confidence and clarity. We take pride in guiding non-profits through these complex requirements with integrity and care.
9. Open to Dialogue and Collaboration
We are always open to discussing how we can help your team prepare more efficiently for audits. Let’s work together to manage both compliance and the cost of your next audit.
