Audit fees should not be debited to accountancy fees. They are a separate cost and if your business is incurring audit fees, its recommended that they're treated separately.
If the audit fees can be specifically allocated to a separate department, then this should be done. Otherwise audit fees should be debited to the Administration Section - Profit & Loss Account and then recovered by way of the Administration Service Charge to be levied to the departments within the business.
This paper covers the following topics:
- Audit Fees Treatment
- Audit Fees Allocation
- Audit Fees for a Specific Profit Centre
