The general method of determining audit fees is based on either Turnover or Total Assets. Methods used are according to the nature of business.
Example, a trading company will use Turnover as audit fees, whereas an asset based company will use the Total Assets method.
* The diminishing scale should not apply here due to clients’ probable complexity and at the same time a capping is deemed appropriate.
In cases where the above methods are not practical to be used, the method below will be applied instead. An example where a company has Turnover of RM10 million, Total Assets of only RM5,000, and operating expenses of RM2 million.