The key to building a strong, healthy and long-term relationship with an auditor is trust. In fact for a business, an auditing firm is almost like a business partner. They are someone businesses work with for years so they become almost an integral part of the business and its success. And as such, it is utmost important to select the auditor wisely. This is something that shouldn’t be considered to be easy and light.
To ensure which auditor you want to choose for your company requires you to go through a tedious assessment procedure as it directly involves your business’ financial stability. The stakes in choosing the best auditor for your company is quite high and thus some tips are compiled here so you can follow them to ensure the best hiring.
Transparent Communication – Good and transparent communication is absolutely important for a win-win audit and auditor relation. A good auditor will always allow you to communicate easily and freely. They are likely to entertain any question you ask and will try to reply satisfactorily. Accounting is quite tricky, drab and complicated subject for the non-accounts people. So make sure your chosen auditor explains everything in a lucid and non-technical way so you can understand.
Industry Experience – An auditor must have required industry experience. They must make you understand things with references of their existing clients similar in scope and nature to your company. The world of accounting is a changeable one. You can ask them how they manage to go with the tide while staying on top of new assertions by modifying and updating themselves. They must be able to communicate any changes with their clients in an understandable manner. A dependable auditing firm will surely have their own plan to cope with accounting amendments.
Market Reputation – This is essential that you consider the reputation of the firm or the individual auditor during the hiring process. You can always ask them for references and accordingly call the references and request to share their experience with that firm. Ask the auditor about the awards they have received for outstanding financial statements. Awards are the means for weighing up the auditor’s reputation and worthiness.
Fees – Though this shouldn’t be considered as a qualifying criterion while hiring the right auditor, fees they charge influence the selection process. To get the best rate against the best services, you may collect a few bids from different auditors to check if the potential auditor’s rate is really competitive. But while comparing the bids, make sure you not only compare the price but also other important factors. Some auditors may charge a multi-year fee at a reduced rate against a single year fee. You may accept such an offer as this would be beneficial for both the parties. But if your company is in a growth period or at the threshold of substantial changes, this arrangement may not be suitable for you.
While hiring an auditor in Kolkata, these are some important factors that you may consider to ensure the right selection.