- August 12, 2018
- Posted by: Rivero, Gordimer & Company
- Category: Business Advice
Choosing an external auditing firm is an important business decision that should not be taken lightly. Unfortunately, few businesses consider what they want from an auditing firm until they absolutely need one. This reactive approach forces many companies to work with firms because of availability or convenience and not merit or experience.
Because external auditing firms can play a vital role in the success of your business, you should take a proactive approach and start thinking about what attributes you want from an auditing partner. Great auditing firms like Tampa’s, Rivero, Gordimer & Company will share similar principles to your business and will understand the nuances of your industry. They’ll have an intimate knowledge of legal regulations affecting your company and will be prepared to answer any questions that you have.
This kind of professional relationship should be entered into with caution, so take time to perform your due diligence before hiring an auditing firm.
Here are six questions to answer before hiring an auditing firm.
Do you have a good rapport?
Trust is an important part of any business relationship — especially one with an auditing firm. Businesses typically work with auditing firms during times when anxiety is extremely high. As a result, if you do not have a strong relationship with your auditor, it can make an already stressful situation worse.
Take time to get to know your potential auditing firm before you make a decision. Make sure you both have a clear understanding and expectations for the relationship. Ensure that communication is quick and effective — and test their aptitude and professionalism.
What level of experience do they have?
Every industry is different — and, each business needs an auditing firm that understands the intricacies of their operations. Look for an auditing firm that understands the industry within which your business operates.
Do they have exerpeince with HUD audits? What about Employee Benefit Plan (EBP) audits?
Ask the auditing firm for case studies and references from other similar companies or industries. Make sure to follow up with references to verify the partnership and qualify the auditing firm.
Do they meet your minimum qualifications?
A very simple way to filter prospective auditors is to make a list of minimum qualifications. Do you want to partner with an auditing firm that is easy to conduct in-person meetings? If so, proximity would be important.
Other considerations might include fees, auditor accreditations, or payment structure. These practical attributes might seem minuscule at first, but answering the question will help you set important filters to quickly weed out firms that do not meet your minimum qualifications.
Will they be objective?
The value of an auditing firm is in their ability to provide objective and impartial insight. Check for potential conflicts of interest, including consulting services that your auditing firm may offer. Inquire about their commitment to integrity, and ways they maintain their ethical boundaries.
Also, gauge whether they are confident in providing honest feedback — even if it’s negative. Avoid moving forward with an auditing firm that cannot offer you objectivity.
Are they committed to your business goals?
Hiring an auditing firm should feel like entering into a strategic partnership with another business. You should conduct your due diligence into the firm just as they should conduct research into your business. Ultimately, the result should be a mutually beneficial relationship with both firms committed to the growth of the other.
Because they will have access to private and sensitive information about your business, it’s critical that you trust their intentions and commitment. If you get the impression that the potential auditing firm is not invested in the growth of your business, they likely aren’t. This could leave you in a worse situation if the relationship falls apart of the firm doesn’t deliver on their promises.
Look for a firm that is committed to your business and your objectives. Rivero, Gordimer & Company is a CPA Firm in Tampa that has a team of experienced auditors that will provide your business with the care and commitment it deserves.
What is their reputation?
Thanks to the rise of digital marketing, almost every business has an online footprint. This gives businesses looking for auditors with an additional resource to help them vet potential partners. Look on their social media channels for feedback and see how the company responds to any negativity. Check out review sites to find honest feedback.
If you are just starting the research process, consider asking other businesses in your industry who they use. Collecting a referral can help you quickly verify the worth of an auditing firm.
The best predictor of future behavior is past behavior — so, assessing the auditor’s reputation can provide a reasonable expectation for what your relationship might entail.
Take your time when looking for an auditing firm
Your auditor can be a priceless resource for your business, so take the time to choose the right one. Keep these six questions in mind as you search for the perfect auditing firm. If you have any other questions about hiring a professional auditor, contact Rivero, Gordimer & Company, a Tampa CPA Firm.