Let me help you out. The company you are familiar with is paying too much. Probably getting a kickback from the accounting firm. Good faith estimates of the costs can be found here:
"Audit Fees. Under both a Direct IPO and a reverse merger, the audit fees will be similar. In both situations the private company is required to have its financial statements for the last two fiscal years audited by an independent, registered accounting firm qualified with the Public Company Accounting Oversight Board (PCAOB), as well as have any stub periods since the end of its last fiscal year reviewed by the independent auditor. In situations where the company has not been in existence for two years, the company is required to provide audits and reviews for the period of time the corporation has been in existence. As mentioned above, these audit fees will vary company to company and audit firm to audit firm, but a good benchmark for a company’s 2 year audit is about $40,000 to $60,000, with the review of the applicable stub period costing an additional $5,000 to $7,500. Most auditors will also have a separate fee for reviewing the registration statement that will contain the audited and reviewed financial statements. This fee is typically between $2,500 and $5,000. Therefore, all told, a private company looking to go public through either a Direct IPO or a reverse merger should allocate around $50,000 to $75,000 for the audit, review of the stub period and review of the registration statement."
"Audit Fees. As mentioned above, the audit fees for public companies vary widely depending on many factors, but a good estimate is $40,000 to $50,000 for the year end audit, and $6,000 to $7,500 for each quarterly review, for a total of about $60,000 to $75,000 per year. If the company undergoes certain transactions, like an acquisition or files a registration statement, additional audit fees will be incurred.
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