Wondering why one strata audit quote is higher than another? This article breaks down the seven main factors that influence audit pricing—plus a few important considerations that can save time and ensure you're engaging an auditor that actually understands strata. Note - Ascend do not do audits.
Understanding What Drives an Audit Quote
When requesting an audit quote for a strata company, it helps to understand the factors that most directly influence pricing. Below, we’ve outlined the seven most common variables auditors consider when determining the cost of a strata audit—and why some take more time and effort to review than others.
1. Number of Lots
Unsurprisingly, the number of lots plays a significant role in the complexity of a strata audit. More lots typically mean more levy notices, owner transactions, and invoice allocations. The volume alone can increase the audit workload considerably.
2. Categorised Reporting (e.g. Using Schedules (PropertyIQ) or Group Reporting (StrataMaster))
Many larger strata companies have schedules or groups configured in their software to split financial reporting across different segments. For instance, commercial lots may have their own set of levies and expenses that don’t apply to residential lots. Each group or schedule acts like a mini-audit within the broader entity, adding extra layers to the review process.
3. Submetering
Submetering arrangements—often used to allocate and pass on utility costs—can add a layer of complexity, especially where the billing and collection of these amounts must be reconciled. Auditors may need to assess not only whether the amounts are correct, but also whether they have been allocated and recovered accurately.
4. Volume of Transactions
Regardless of how many lots there are, if the company processes a large number of invoices, levies, adjustments or journals throughout the year, the audit workload increases. Higher transaction volumes take longer to test and reconcile.
5. Software Changes
A change in software systems during the audit period — either due to a change in strata manager or a software transition within the same manager — can significantly impact the quote. Incomplete data migrations or inconsistencies in reporting formats often require additional audit attention. Effectively, the auditor is reviewing two sets of reports and ensuring they're aligned.
6. Quality and Complexity of the Accounts
Accounts that are clearly structured—with a balanced chart of accounts and reports that fit neatly within a page—will usually attract lower audit fees. On the other hand, accounts with extensive line items or poorly grouped categories make it harder to assess the financial position and can drive up audit costs.
7. Timing and Preparation
The timing of the request can also impact the fee. Strata managers who provide sufficient lead time and a clean set of reports may be quoted more favourably than those submitting urgent or disorganised requests during the busier times of year.
Don’t Just Consider Price
While price is obviously an important factor, it shouldn’t be the only one. Not all auditors understand the unique nature of strata, and experience therefore matters. An auditor unfamiliar with strata may flag irrelevant issues or overlook important ones simply because they’re applying general auditing standards to a specialised structure.
Another consideration is whether the auditor is comfortable with remotely accessing your strata software directly. Remote access allows auditors to source their own documentation, such as invoices, levy notices, or meeting minutes, and can significantly reduce the back-and-forth with the strata manager if the auditor is capable (and willing) to engage this way.
It’s also important to consider the independence of the auditor. If a particular firm is routinely referred by the strata manager and receives substantial tax or BAS work from them as well, this may create a perceived conflict of interest.
Ascend’s Role in Making It Easier
At Ascend, we don’t offer audit services—our relationship with our strata manager partners is too close for us to act as an independent party. However, we do offer a time-saving quoting tool that allows our clients to submit a quick online form with key details. From there, our system automatically distributes it to several independent auditors with strata experience, who will contact you directly with a quote.
Please note that Ascend receives no kickbacks or referral fees for these referals - The tool is simply designed to save our partners from having to seek out and contact separate auditors and ensures they're only engaging with experienced, strata-aware providers who won't waste their time.
Quick Takes:
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Number of lots, schedules, and submetering all influence audit complexity.
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High transaction volumes and messy reports can drive up quotes.
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Software changes and late notice can affect timing and pricing.
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Choose auditors with strata experience and consider independence.
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Ascend’s quoting tool makes it easy to get multiple quotes from experienced auditors.
If you're interested in access to our audit quoting tool, please reach out to our admin team.
Links:
- Optimising Your Chart of Accounts
The above content is of a general nature and should not be relied upon as professional advice. Ascend encourages readers to seek advice from suitably qualified professionals in relation to their specific circumstances and not to rely solely on the information provided above. Please contact our office for more information.
(C) 2025 Ascend Strata Pty Ltd