Choosing the right external auditor for your business is an important decision. As such, it is essential to choose an auditor who is well-versed in the details of the business, its industry, and the relevant regulations.

What is an External Auditor?

An external auditor is an independent professional hired to review the accuracy and reliability of financial statements and other financial information. They are responsible for ensuring the information provided is accurate and compliant with applicable laws and regulations.

External auditors review financial statements and information to look for errors, omissions, or discrepancies. They also review internal controls and make recommendations to improve them. They may also investigate potential fraud or other irregularities.

Here are some ways to choose the right external auditor for your business.

1. Identify the Type of Audit Required

Generally, audits are categorised as either financial statement audits or compliance audits. Financial statement audits are designed to provide an opinion on whether the financial statements are presented fairly and following applicable accounting standards. Compliance audits are designed to assess whether the company complies with applicable laws and regulations.

2. Research for Potential External Auditors

This can be done through referrals from business colleagues, industry associations, or other sources. It is important to research the background and qualifications of any potential auditors. The auditor should have the necessary experience and qualifications to conduct the audit by accepted standards.

When evaluating potential external auditors, it is important to consider the following factors:

• Reputation

Choosing a trustworthy and reliable auditor is essential. It is important to identify someone with an established track record of success in the industry and who has earned the respect of regulators.

• Experience

The auditor should know the type of audit they are performing, as well as the related industry and regulations. They should also understand the client's accounting and other needs well.

• Cost

The cost of the audit must be taken into consideration when selecting an auditor. Getting quotes from a few different auditors is an essential step in choosing the most cost-effective option.

• Location

Choosing an auditor who is easily accessible and able to meet with the client when necessary is a key factor in the selection process. It is essential to pick an auditor nearby and be available to provide assistance and advice when needed.

3. Make an Informed Decision

Choosing the right auditor is essential for the success of an audit. It is important to find an auditor who is compatible with the company and its goals and knowledgeable about its specific needs. This will ensure the audit is conducted quickly and accurately, with the best possible results.

The Bottom Line

Choosing the right external auditor for your business is an important decision. By carefully evaluating potential auditors, you can ensure that you select an auditor who is qualified and experienced in conducting the type of audit that is required for your business. Additionally, make sure to ask the right questions and get an understanding of the audit process before making a final decision. With the help of a qualified and experienced auditor, you can rest assured that your business's financials are being properly audited.

Bloom Recruitment specialises in helping companies fill positions in Accounting and Finance. We offer external audit services to assist companies with their financial needs. Contact us to learn more about our services.