Calculator

Compliance-Audit Hour Estimator

Published May 10, 2026

The cost of a compliance examination is split between the regulator's hours (which the firm pays for indirectly via supervisory fees + management distraction) and the firm's prep hours (direct cost to compliance + engineering). This calculator estimates both, and surfaces the artifacts that compress them — most of which are checklists, assessments, and a defensible synthetic corpus.

What you walk away with

~50s · 4 inputs
  • Estimated examiner-hours for the upcoming exam.
  • Estimated internal-prep-hours required to be ready.
  • A delta showing the prep-hour reduction from having a defensible corpus + the relevant checklists in place.

Inputs

Default source: Multiplier on a baseline 80-hour exam

In billions USD. Use 0.1 for $100M.

$B

Distinct subjects in scope (Reg BI, AML, Form ADV, custody, Marketing Rule, etc.). Most exams cover 2-5.

components

How structurally complete is the firm's evidence today?

Default source: Per the relevant Audit-Readiness Scorecard band

Estimated internal-prep hours
218 hours

Hours of compliance + engineering + product time required for examination prep. Driven primarily by evidence posture — a Defensible posture cuts prep hours by ~30% vs. Findings-Possible.

Estimated examiner hours (regulator-side)
170 hours

Regulator-side hours. Stronger evidence posture compresses both sides; the regulator finishes faster when answers are structurally available.

Prep hours if posture were Audit-Ready
118 hours

What the prep effort drops to once the firm reaches Audit-Ready posture.

Hours avoidable by improving posture
101 hours
Sensitivity

Internal-prep hours under three evidence-posture states.

  • Findings Likely posture302 hours
  • Defensible posture168 hours
  • Audit-Ready posture118 hours
Talk to us
Calibration source: FINRA / SEC examination patterns 2022-2025 + observed prep-hour patterns at customer firmsOrder-of-magnitude estimates. The model is most useful for procurement / planning conversations — not for forecasting a specific exam's hours. Posture multipliers calibrated against the bands surfaced by the corresponding Audit-Readiness scorecards.

FAQ

These numbers seem high.

Across firms we've worked with, a typical SEC RIA examination consumes 150-300 hours of internal compliance + engineering time when posture is Findings-Possible. Defensible posture cuts that by ~30%. Audit-Ready cuts by ~50%. The ROI on improving posture is usually visible in the first exam.

What about the cost of getting to Audit-Ready?

The Build-vs-Buy ROI Calculator captures the corpus side of that. The Maturity Assessment scopes the program changes required.