INFOGRAPHIC | August 17, 2023
Authored by RSM Canada
As your business grows and becomes more complex, your audit needs evolve. You might feel an increasing need for industry specificity, or perhaps your data management challenges demand modern applications and processes. Sometimes, your needs may be more foundational-you want an auditor who will meet deadlines and avoid surprises. Maybe you just want to cultivate a more productive working relationship.
Ultimately, your goal is a quality audit that provides great value. Although that means something different to each organization, your path to realizing that value starts with an understanding of what comprises a quality audit and the reasons you may be inclined to change auditors.
Why might you search for a new auditor?
- Insights: Companies want an audit firm with deep knowledge of a specific industry or a better understanding of the company’s unique needs.
- Costs: Companies often seek to reduce audit fees by hiring a firm that is more cost-effective.
- Relationship: A breakdown in the working relationship between the auditor and the company could lead to a switch.
- Independence: Stakeholder confidence in financial statements is built on the auditor’s integrity, competence, objectivity, and independence
Mapping the path to a quality audit that provides great value can help you evaluate your current dynamic.
That may prompt additional reflection about audit quality, with questions such as:
- Does your audit firm disclose the system of quality control it uses to support audit quality?
- Does your audit firm have the resources and geographical reach needed to meet your business’s needs?
- Does your audit firm’s processes help avoid surprises, detect issues early, and complete the audit in a timely manner?
- Does the engagement team have the necessary skills, industry expertise, and resources?
- Does the team use technology and data analytics to identify risks? Does it add valuable human insights to supplement the technology?
The answers are crucial to how your audit supports operational effectiveness and stakeholders’ confidence in your financial statement data. And they may compel you to begin down a new path.
Source: RSM Canada
Used with permission as a member of RSM Canada Alliance
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