Choose your auditor wisely
You’re the finance director of an SME and understand the critical importance of getting the audit process right. But how do you select an appropriate partner? Ryan Smith from Page Kirk’s audit department outlines eight key criteria you might want to consider.
In many ways, professional audit is the bedrock of successful business. It's the way in which customers, suppliers, regulators and wider society can have confidence that we are managing our finances and processes appropriately. It provides an important snapshot as to the health of any company or organisation. But if you're a Finance Director and tasked with selecting an auditor, it can sometimes seem a slightly daunting process.
Here are eight issues that are worth exploring before making your final decision:
Get the basics right
It goes without saying that whoever is carrying out your audit must be affiliated to a professional body such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Association of Chartered Certified Accountants (ACCA). Beyond that, you should ideally look for auditors with experience in your own industry, as they may be able to give you a greater level of insight in their reports.
Obtain references
As with any kind of service, you'll feel more comfortable if you have the testimony of others that the auditors do a good, professional job. Look for any reviews or commentary online and ask directly for references from existing clients.
Confirm the auditor's scope
Will your audit partner provide all the necessary services you require? As well as covering off all the statutory requirements, can they give advice on areas that are critical to your business success and make suggestions that will help to improve performance?
Check the approach they'll take
It's important to get an understanding of the auditor's methodology and the requirements they'll ask of you. That way the onboarding process becomes a lot more straightforward. What technology and tools are they using? Make sure the practices are as up to date as possible.
Agree the costs
You don't want any hidden surprises. A professional auditor should be very clear about their fee structure, so you can ensure that it fits within your budget expectations. It's worth considering value for money though: the cheapest option won't always necessarily be the best!
Have confidence in communications
Audit processes depend on good communication flow, so try to establish communication channels and identify the main individuals/team for different areas . Ask how far they'll make themselves available for informal contact during – and outside – the audit process.
Ensure objectivity
The auditor needs to be completely independent and must be able to provide detached and unbiased advice. Make sure there are no potential conflicts of interest before deciding on your appointment and that the firm you choose follows the highest ethical standards.
Look at resources
Although a smaller firm might provide a greater degree of personal service, which would definitely be a plus, your audit partner must be large enough to provide the resources and range of services that are essential for your business. What team is being assigned to your company? And what experience and expertise do they have?
With this checklist in mind, you can confidently head into a selection process knowing that you are likely to make a sound and reliable choice.
Page Kirk has a wealth of experience in providing audit services to clients in different sectors, so if you want to discuss your own requirements further, simply call us on 0115 955 5500 or email enquiries@pagekirk.co.uk
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