Accrued audit fee

[Tan Chun Huat]

Hi,

My auditor has quoted an audit fee of $3k for FY18/19 (My FY starts 1 April). Is it correct for me to accrued this now or can i expense it off fully?

DR Audit Fee $3k
CR Accrual for audit fee $3k

Thanks.

Regards,
CH

 

[Steve-LevelUp]

I typically accrue the audit fee evenly over the year. So, I would record $250 a month every month as an accrual (as you have proposed) which would end at $3k by Mar 31.