Tag Archives: audit

Potential Big Changes Coming for Every Auditing Firm

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auditing firmNew rules that are being proposed by the Public Company Accounting Oversight Board will likely result in a major overhaul of company audits. The board wants accounting firms to start including a potentially large amount of new information in the audit report that is attached to a company’s annual report.

It is said that their proposal is one of the most ambitious to date. The board was set up a decade ago in light of accounting scandals at large companies which revealed serious shortcomings at auditing firms.

As part of the proposal, it would require auditors to communicate details of the difficult parts of the audit, with many situations, especially with large corporations, where the auditor may find the task quite nettlesome.

Requiring this extra information may draw opposition from some auditors due to the added expenses. Some believe it provides a better opportunity to communicate more information, with auditors and audit firms providing greater value for investors and users of financial statements.

This also means that the public and investors will have better insight as to exactly what is going on inside of a company. The proposed changes would certainly mean a bit more work for auditors; companies may look at things a little bit differently before making certain financial decisions as well.

Having a qualified auditing firm on your side may be more important than ever. To find the best for your business, it’s essential to pinpoint your exact needs to eliminate those you don’t want to work with. For example, do you need a firm that can provide a specific type of service or that provides a more comprehensive package of services? Consider your particular budget and whether or not the firm has industry experience.

Don’t seek an auditing firm out of the yellow pages. You might consider contacting other businesses within your industry or professional organizations such as the American Institute of Public Accountants to see who they might recommend. You’ll then need to put together a list of potential firms and contact each to find out their fees and services.

The quickest route to finding a qualified, reputable auditing firm is to contact the consultants at GoodAccountants.com you can locate the one that is right for you with no financial cost or obligation.

How to Find an Auditing Firm That’s Right for You

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how to find an auditing firm The U.S. is home to over a million auditors and accountants; how do you begin weeding through them all to determine which auditing firm is right for you and your business? While it can seem like a rather challenging task, by following these steps you’ll increase the odds of being able to find an auditing firm and create a long lasting, successful relationship.

What are your needs?

Before starting your search, pinpoint the needs of your business so that you can first eliminate the firms you don’t want to work with. Do you need an auditing firm that provides specific types of services or can provide a comprehensive package? Do you have a particular budget that you need to work within? Is it important that the firm have industry experience? Consider your must have criteria as well as more flexible criteria to avoid eliminating a potentially highly qualified firm.

Once you have a clear list of wishes and needs, you can begin the diligent selection process.

Professional organization recommendations

If you want to find an auditing firm that will do the best job for your business, you don’t want to peruse the yellow pages. Auditing firms that advertising in your telephone book are probably either just starting out or may be having difficulty finding clients on their own due to a questionable reputation.

Instead, contact professional organizations like the American Institute of Public Accountants or the American Accounting Associations for a list of recommended auditing firms. Once you have a list, you can review their websites or call to find out the services they offer as well as typical fees.

Screening potential firms

Screening the firms you are interested in by thoroughly checking references from current and/or past customers is a must to find an auditing firm that has the potential for a long lasting relationship that will contribute to the success of your business.

Be sure to verify education and training levels as well as all of the certifications of each audit firm. Verify that all members of the firm have graduated from accredited four-year institutions and that the CPA exam has been passed.

Referral service

Using a referral service like GoodAccoutants.com may be your best bet as well as being the most cost-effective option to find an auditing firm that’s right for you as quickly as possible, and without the hassle and headaches.  With the ability to provide multiple quotes from a variety of audit firms with your privacy completely protected, GoodAccoutants.com can do all of this leg work for you – allowing you to do what you do best for your company.

Purpose of Auditing Firms

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Businesses large and sauditing firmsmall have used auditing firms in the past to ensure the financial responsibility of the company and produce a determination that the business is financially sound and more.  Auditing firms are third-party entities which review the financial aspects of a company by reviewing the financial paperwork and determining the current financial status of a company.  The following will detail the purpose of an auditing firm and highlight why such a third-party entity is important.

What Does An Auditing Firm Do?

An auditing firm will review the various financial aspects of a company and create a detailed report thereafter reporting the findings.  This usually occurs once per year and gives the company owner and its department officials insight into how the business is doing with the state of their finances.  The auditing firm is paid by the business and completes their work with efficiency and thoroughness.

Why Auditing Firms Are Important

Auditing firms are extremely important for a few different reasons.  First, a firm which completes audits for entities ranging from small, privately-owned businesses to large corporations provides the business with a clear picture of their financial status.  In addition, this type of firm compiles the proper information to let shareholders and company clients know how the company is faring.

Also, firms which complete audits help the businesses whom they audit to show that their dealings are fair and honest.  Since the audit firms are independent of the company, they offer a true picture of the state of the company and their finances.  Therefore, outsiders can trust the information and know that it is not coming directly from the company which the audit covers but from an outside auditing entity instead.

In addition, audits of this type help the business and its owners prepare for the future.  The results let the business owners know what their financial status currently is and can use this information to properly proceed in business into the future.  They can tailor future expenses to the results received due to the audit and their shareholders can feel at ease knowing the financial state of the company in which they hold stock in.

Using an auditing firm is a wise move for any business to make.  It will keep the business firmly grounded and help to make it even more of a success in the years which follow.  There are many excellent audit firms out there today and plenty to choose from when it comes time to pick a firm to audit your business.

Accounting Audit: Bad for Your Business?

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Accounting Audit: Bad for Your Business?

Aside from the word bankruptcy, there is probably not another word more feared by businesses than audit.  However, an accounting audit is not necessarily a bad thing for your business.  In fact, in some cases, an audit can actually help your company save money and eventually increase your company’s overall profit and performance.

There are basically two forms of audits: an internal audit and one conducted externally, typically by the IRS.  If you are a professional business maintains accurate and honest records:  neither audit should be feared.  In fact, both types can help highlight areas where your company could improve.

The Benefits of an Internal Audit

Hiring a professional company to conduct an internal audit is typically an extremely effective practice.  Internal auditors are objective individuals who will take the time to evaluate and question each aspect of your business.  At the end of their review, they will provide your company with a list of recommendations.  It is ultimately your company’s decision on whether or not these recommendations should be implemented.

Internal audits can provide the following for your company:

  • A strong, organized accounting system
  • Eliminate or reduce the risk of internal fraud
  • Highlight potential areas of loss and/or missed revenue
  • Decrease the possibility of an external audit

However, internal audits are dependent on the auditor’s ability to recognize whether the information being provided to them is accurate and complete.  To increase the success of your accounting audit, hire a company that is familiar with your industry’s specific needs and challenges. Once hired, be certain to give them enough time to thoroughly evaluate all aspects of your company.

The External Audit

External audits are probably one of the most feared items by all businesses. However, there are ways to come out of this process successfully and hopefully a bit more informed.

When you are notified of an external audit, become familiar with all financial aspects of your business.   Set up a meeting with your accountant and discuss your company’s tax return and where all of the backup material is retained.   When the auditors arrive, answer all questions honestly and readily provide them with the information that they are requesting.  Ideally, the auditors will be satisfied with your response and their file can be closed.

In general, an accounting audit is not a bad thing for your business.  In fact, a thorough internal audit can actually help your company increase its overall profit.