06-19-2010, 01:49 AM
Naveed
Firms do audit NGOs may be in 75K but the thing to remember is that firms are not NGOs in theirselves. You just forgot the cost of supervisors, Assistant Managers, Managers, Directors (leaving apart the partners who are equity holders), phone and computer operators, and people hired for support services like drivers and peons and watchmen/security guards; rentals, power, petrol, utilities, office expenses, depreciation, subscriptions and periodicals, stationary and printing, entertainment, maintenance, vehicles running, insurance, and last but not least a lot of unabsorbed travelling. Students are not the only one factor causing cost to firms, rather they are just one factor. A bunch else is there as well.
After providing for all these expenses the equityholders (partners) need to be reasonably compensated for their experience, time, devotion and responsibility and the burden of firm's tax which only equityholders have to share.
I told in my previous posts that MOSTLY the audit departments of firms are on break even or loss; and if some one is in profit, the margins are very low.
I understand in the age of a trainee it is hard to grasp.
Regards,
Firms do audit NGOs may be in 75K but the thing to remember is that firms are not NGOs in theirselves. You just forgot the cost of supervisors, Assistant Managers, Managers, Directors (leaving apart the partners who are equity holders), phone and computer operators, and people hired for support services like drivers and peons and watchmen/security guards; rentals, power, petrol, utilities, office expenses, depreciation, subscriptions and periodicals, stationary and printing, entertainment, maintenance, vehicles running, insurance, and last but not least a lot of unabsorbed travelling. Students are not the only one factor causing cost to firms, rather they are just one factor. A bunch else is there as well.
After providing for all these expenses the equityholders (partners) need to be reasonably compensated for their experience, time, devotion and responsibility and the burden of firm's tax which only equityholders have to share.
I told in my previous posts that MOSTLY the audit departments of firms are on break even or loss; and if some one is in profit, the margins are very low.
I understand in the age of a trainee it is hard to grasp.
Regards,
