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Helpful Tips for Selecting a Reliable External Auditor

Helpful Tips for Selecting a Reliable External Auditor

Oct 20 2015

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Helpful Tips for Selecting a Reliable External Auditor

When you are running an established business, regardless of how small our big it is, it’s always constructive to get an unbiased, third party review about your business functions and operations. When it comes to the reporting of financial matters, businesses often hire external auditors to review the company’s finances and perform an audit of all the financial statements. They determine how fair and justified the company’s accounting and financing are to back their opinions after thorough evaluations.

Even though the market is filled with countless external auditors, it’s difficult to find out which ones to go for. Businesses must take up rigid practices to hire the right external auditor. If you’re not sure about how to go out and about it, follow some of the tips stated below:

Find Out About His Professional Licenses

Make sure you are hiring an external auditor that’s at least equally licensed as a Certified Public Accountant (CPA) or a Chartered Accountant (CA). Furthermore, hiring an external auditor who has accreditations from renowned organizations is also a good move.

Learn About the Audit Fee

It’s wise to weigh the costs and benefits of hiring an external auditor. Make sure that the fee being demanded is not too low or too high. It’s always good to have a pre-decided budget of your own and then assess the potential options around it to avoid losing track. However, if you are doing it for the second time, then settling for a low fee isn’t harmful because then you would’ve followed your external auditor’s recommendations well enough.

Hire an Independent Auditor

One of the primary reasons why you are an external auditor is getting an unbiased and impartial review of your company’s current financial situation. Hence, it’s nonsensical to hire someone whose verdict is dependent on certain external factors or are mostly partial. To keep up with the impartiality and independence, hire someone with whom you or your company doesn’t share a direct or a deep-down indirect relationship.

Determine the Reputation and Track Record of Your External Auditor

It’s important to hire someone who has a history of being honest, experienced and reputed in his/her field. When meeting a potential external auditor, always make it a point to ask about his/her prior working experiences, track record and customer feedbacks to judge the quality of his/her audit performance. Also, find out whether the external auditor has faced legal consequences in situations of audit failures.

At AuditProposal.com, we help you find a CPA near you. Search among over 12,000 CPAs in our nationwide directory or upload your RFP to have CPAs contact you directly. Start today at AuditProposal.com.

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