Fees for accountants and auditors of government companies will go up 25%, states Government Companies Authority director general Doron Cohen in a circular on procedures for hiring and paying accountants.
The circular states that the hourly fee for an audit or review will be set by the type of audit at the company. The hourly rate for a partner will be NIS 280-360; the hourly rate for an audit manager will be NIS 214-270; the hourly rate for a chief assessor will be NIS 175 and it will be NIS 145 for an assessor. The average hourly rate will be NIS 220, and will be uniform for all hours of a job, in contrast to the current practice, in which the hourly rate falls as the size of a job grows.
The rates will be paid for work by an accountant or auditor for work on financial reports since the end of December 2009.
The rates for accountants and auditors of government companies were last updated in 2000. The circular states that, since then, the accounting profession has developed and requirements of accountants and auditors have grown. They need to be proficient in a range of subjects, and deal with complex issues depending on the type and activity of the company being audited. Accountants and auditors' risks and responsibilities have also grown.
Institute of Certified Public Accountants in Israel president Doron Kaufman said in response that the measure was a step in the right direction, but still far from prevailing global rates. "I hope that this update is the first in a series of updates in accountants' fees, and the Institute of CPAs intends to seek higher fees in other sectors to reach the prevailing level in OECD countries," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010
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