Present audit rules, guidelines, and regulations used by governmental agencies are in some cases discriminatory and in most cases adversely impact the financial stability of consulting engineering firms. These agencies expect quality design services but, in too many instances, are not willing to pay a fair price for same. They fail to recognize that quality design and innovation requires a fair fee for services to be rendered. This paper discusses some of the most glaring inequities in audit rules, guidelines, and regulations as they apply to consulting engineering firms contracting with governmental and quasi‐governmental agencies. Some of these include limitation on overhead, multiple audits, disallowance of interest as an overhead expense, limitations on principals' compensation, limitation on salary rates of persons working on contracts, limitation on ability to charge a fair price for automation, and limitations on the inclusion of state/city income taxes in a firm's overhead calculation. Consulting ...