How to find the best auditor for your business

How to find the best auditor for your business

Looking for a new auditor may not be top of your to do list but finding the right auditor can make a huge difference to the benefits that an audit can bring you and your business.

Many business owners see their audit process as part of regulatory requirements rather than something that can add value to their business. Finding the best auditor for your business can make a huge difference to your audit outcomes.

With much in the media about the big 4 audit firms and concerns over auditing standards, now more than ever could be the time you should assess and review your external auditors. But how do you ensure that you find the right auditor for your business and how can you understand the differences when it seems many of them are offering the same thing?

Criteria to choose an auditor

There are many auditing firms in the market, but how do you find the right auditor for your company? Here’s my list of points you should consider when choosing an auditor:

Understanding your audit needs and the auditor

Is the auditor willing to spend sufficient time in your company and with you and your team to truly get to know you, your processes, future plans, culture and values?

Do they audit similar companies to yours either similar size, similar industry or with similar processes? By having this sort of experience an auditor will undoubtedly provide a more effective and efficient audit that will match your specific requirements. Any auditor worth their salt will be able to translate their findings and analysis into real world solutions and ideas for your business.

Consider if the audit firm is large enough and has enough staff resources and expertise to properly undertake your audit.

Ask to see testimonials or speak to current clients as reference points to really check them out.

The audit team and team continuity

Continuity of the audit team assigned to your audit can be a really important factor in getting the most from your audit each year. Ask the potential firm about their staff turnover and continuity of the team you’ll be assigned. Whilst no firm can guarantee 100% continuity, they should be able to give you some reassurance and proof in this area.

Quality assurance

A good quality auditor should be able to demonstrate their service quality and how they comply with legislation, auditing standards and reporting practices. For example, what is their training programme, what is their file and quality review process, what testing approach do they use and what is the sign off process?

Ongoing support and advice

A great external auditor should also become your business advisor who keeps in touch with you throughout the year to add value, continue to keep on top of changes in your business and be prepared for the next audit and offer you additional audit advice. If they don’t then they won’t be adding value in a way they should.

Competitive audit fees structures

When choosing an auditor, the fee shouldn’t be the only factor you consider. All the other things above should be key parts of your overall decision-making process. It’s good to get a selection of quotes and compare the fee level and also the level of service being offered. Then you can make a more informed decision.

Consider the auditing firm size

Not all auditors are the same. There has been much criticism of large audit firms in recent years and this reputation has affected auditors across the industry. However, a good auditor should have a good reputation, so you could research the auditor online, look at their reviews and ask if their clients could provide you a testimonial.

What are the advantages of an audit to your business?

An audit can be a great way to:

• provide independent assurance over your financials
• add credibility to your business
• improve internal systems and controls
• identify fraud
• identify weaknesses and risk areas
• make future commercial decisions
• increase the value of your business
• give shareholders reassurance and confidence

Read our blog on how an external audit benefits your business here.

Questions to ask a business auditor

It’s important that when you come to choose an auditor that you dig deeper into the real nuts and bolts of how the audit will be undertaken. By asking these questions, you’ll understand the process, how they’ll minimise disruption to your business and what you’ll get at the end of the process. So, ask questions like:

How will the audit be scoped?

What is the proposed audit timetable and key milestone dates

Who is the lead person on the audit and how will they manage and supervise the team?

How will communication work throughout the process?

How will the final report be presented and discussed?

What analytics and insights will they provide?

What our audit process looks like

A good audit firm will have a clear audit process, and this should be clearly communicated to you alongside specific timescales. For example, here at Haines Watts the following key stages make up our audit programme:

Transition and interim review

This will look at areas such as ID confirmations, planning meetings, financial reporting issues, roles and responsibilities clarification, approach to stocktake and/or stock testing.

Audit planning & controls review

This stage will mean working with you to determine the audit strategy, identify critical accounting and audit issues, discuss your concerns, risk assessment, analytical review, and preparing an audit timetable.

Initial audit fieldwork is performed to understand your business and its accounting and reporting systems, assess risk, review systems and controls and assesses their design and implementation.

Audit fieldwork

This is where we delve deeper into your financials and perform our detailed testing of the figures and disclosures in your financial statements. This is the main part of the audit, and this work is key in enabling us to obtain the necessary information for when we later need to conclude and form an opinion on your financial statements and provide recommendations for the future.

Completion & reporting

Completion procedures include areas such as an overall evaluation of the financial statements, forming our audit opinion, discussing any audit issues with key management, holding meetings with management to discuss our audit findings and the finalisation of our audit report. We will also discuss the company's financial statements, agree upon any final adjustments to the accounts and the timetable for the filing of accounts and the corporation tax return.

This is where real value can be added by us discussing the audit findings and key recommendations with you.

For audit help and advice, get in touch with Haines Watts today

An external audit should deliver much more than legislative compliance. An auditor should be there to provide you a beneficial and value adding exercise, providing you reassurance and strategic insights to help your business prosper.

To really find auditors that will add value to you and your business through the audit process, you need to choose carefully.

Please do not hesitate to contact Haines Watts Liverpool, Wirral, or Chester to discuss any of the above and how we can add value to your audit process.