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Choosing an audit company is not a simple matter, since an audit is a specific service, with its own rules of the game and the current market. This topic is especially relevant due to the lack of licensing of audit activities.
What should a leader and chief accountant know when choosing an auditor in order to receive quality services, maintain the financial security of the organization and, in the end, not buy a “pig in a poke”?
In our opinion, it should be based on some basic principles of choice.
1. The most important criterion for choosing an Retail audit company is REPUTATION. Not the last way to disseminate information about the audit company is the so-called Word of mouth. Ask your colleagues and business partners – they will definitely share with you both positive and negative experiences with auditors.
Moreover, the reputation is not so much as an assessment of goodwill (the value of the name and business value (position) of the company), but rather a business image: professional history (dossier), commitment, objectivity, ability to comprehensively assess the audited entity, taking into account the characteristics of the client’s activity, ability specific recommendations.
2. Undoubtedly, the reputation of the company as a whole is made up of the LEVEL OF QUALIFICATION AND PROFESSIONALISM OF PERSONNEL.
Naturally, this is knowledge of the legislation in the field of audit, accounting, taxation, and law. In addition, knowledge of the subtleties in the audited business segment (energy, transport, communications, etc.) is required. Some audit firms, mainly checking enterprises specializing in wholesale or network retail, are unlikely to be able to check informally an enterprise specializing in transportation services or construction works.
Do not forget about such characteristics as the correctness, politeness, and sociability of auditors. It is important to understand that the reputation of the company and the individual professionalism of the staff are, in fact, one whole.
3. A significant selection criterion is the ability of an audit firm to provide a WHOLE COMPLEX OF SERVICES. An audit is an important but not the only element of the practice of auditors. As a rule, auditors are still engaged in the provision of consulting services in the field of accounting and taxation, consulting in the field of international tax relations, property valuation, management consulting, legal services, etc.
The ability of an audit company to provide a range of services reduces the company’s costs for this type of service since it reduces the risk of attracting an incompetent specialist, less time is required to get into the course of business, and the circle of people dedicated to the intricacies of the client’s financial activities is narrowed.
4. An important criterion is the PRICE (COST) of AUDIT.
Practice shows that one of the major mistakes of the customer when choosing an auditor is that they choose the cost of a person-day, and not the cost of the audit as a whole. Therefore, choosing a retail audit company in Delhi or an auditor – an individual entrepreneur, ask them to first assess the cost of the audit with an audit plan.
If you want to get the best option, choose the average cost, which will allow you to get decent quality at a reasonable cost.
5. And the last – the fifth by listing, but not by significance – an essential criterion, this is RESPONSIBILITY. In connection with the cancellation of one of the conditions for auditing to obtain a license, the requirements for professional liability insurance in 2011 are not mandatory. At the same time, almost all audit companies continue to carry out voluntary professional liability insurance. Traditionally, national companies are insured for the minimum insurance liability limit.