Business owners might opt to hire audit firms for a number of reasons, maybe they want their management procedures to be refined or they might simply be looking for sound financial advice. Regardless of the reasons, businesses should always look for the following aspects while choosing auditing firms.
Scope of services– Apart from the financial advice and evaluation an audit firm should at least provide the following services:
- Understanding and evaluating internal control procedures
- Performing investigative procedures on expected or unexpected differences in account balances or transactions
- Testing and refining of financial management, reporting and organizational management procedures
- Review and analysis of all accounting related report
- Risk evaluation and evaluation of risk management procedures
Experience– The audit firm should have at least a few senior members with a substantial amount of experience, preferably in working with companies in the clients industry.
Transparency– An audit firm should be able to operate within the rules and policies of the client’s
company while completing all the requested evaluations within the time provided. A transparent and impartial auditing company is pretty apparent from the nature of questions they ask their clients who are looking for a new auditing firm.
Ethics– An audit firm should provide confidentiality and it should be able to provide not only a number of solutions, but quality approaches towards decision making procedures. Firms provide sensitive financial information to audit companies; therefore, they should be sure that they are passing on their information in the right hands.
While choosing an audit firm, a major part of its performance depends on the access to information. Once an organization chooses an audit firm, they should provide complete management or financial related information so that the audit firm would be able to complete its job more effectively.