Do you need a new audit firm?

You may feel that changing audit firms is too hard, it doesn’t need to be. Finding the right firm can be VERY satisfying and beneficial to your business.

  1. How much are you paying for your audit?
    The market is extremely competitive at the moment. Now is a great time to see how your fee compares in the current market. If your competitors lodge their accounts with ASIC, have a look as the audit fee is generally disclosed. We’ve seen significant fee reductions between firms. Always remember that quality and reputation should never be compromised.
  2. Does your auditor understand your business?
    If your gut feel is that your existing auditor doesn’t understand your business and processes, then challenge them on this and ask a potential auditor how they address this to give you the right gut feel.
  3. Is your Audit team explaining what they are trying to achieve?
    Most audit teams just sit in the meeting room allocated and demand information. Being clear about their objectives goes a long way to achieving an efficient audit. Any potential audit team should be able to clearly explain what they are looking to achieve for any area of an audit.
  4. Is the audit team putting too much pressure in your finance team?
    Information requests from audit teams can be significant creating a heavy burden on your finance department. Ask the prospective auditor what they will do to alleviate this pressure.
  5. Are you seeing any value add?
    An audit is often viewed as a commodity, or something that legally needs to be done, but isn’t wanted. The audit team is in a fantastic position to really understand the business and uncover ways to add value. Ask the prospective audit firm for recent examples of where they have added value to clients.
  6. Is the audit staff turnover a concern?
    This often sits at the top of client’s concerns. Each year a new team rotates onto your job, with the teaching cycle beginning again. Quality firms should have staff turnover lower than the average. Do some research and ask the question.
  7. Are you concerned with transitioning to a new firm.
    This process need not be as big as it seems. Ask the new auditor what they will do to make this as smooth as possible.
  8. Should you ask for referees?
    This is a great way to get some instant feedback on the new audit firm. At CIB we pride ourselves on excellent service and do everything we can to protect the reputation of our firm and our clients. If you would like to talk to someone about your audit please contact us at CIB Accountants. If you would like additional tips or ideas for your business please subscribe to our channel or send us an email via ask@cibaccountants.com.au.