How to Select the Right Audit Partner for Your Company

When it’s time to begin preparing for an audit, hiring a qualified audit partner is critical. An underqualified audit firm can cost you money— and land your company in hot water with regulatory agencies.

You can avoid these pitfalls by taking the time to understand the key criteria for selecting an audit team. In this post, we’ll explain the necessary qualifications to look for in an auditing firm and give you tips on what to look for regarding pricing structures.

Key Criteria for Selecting an Audit Partner

Every industry has its nuances that make it unique. Sometimes, these unique characteristics play a significant role in reporting and auditing requirements. This is why it’s critical to select an audit partner who understands your business needs and goals.

Here are three criteria to look for when choosing an appropriate audit partner for private company audits.

1. Audit Qualifications and Experience

You need an audit partner with relevant industry experience. Their experience within your industry (and their own) is invaluable. The best auditors are well-versed in reporting regulations and understand the necessary steps to ensure your company complies with necessary auditing and regulatory requirements.

Your audit team should also have relevant professional certifications, such as AICPA membership or the PCAOB. Keeping these certifications relevant helps your auditors adhere to generally accepted accounting principles (GAAP) even when standards and regulations are updated. This can be the difference between submitting a compliant audit and failing to report accurately.

2. Independence and Integrity

It is critical that you work with an independent auditor. An independent audit firm does not have ties to your organization, so they can objectively review your financials to provide an unbiased audit report. Working with an independent firm means your auditing professional does not receive insider benefits from reporting and reviewing your financial statements.

This doesn’t mean you’ll need to find a new audit team every year. Instead, you can work with a trusted audit firm for many years. At Assurance Dimensions, many of our clients continue to work with us year after year.

3. Quality and Peer Review Standards

Just as your company must undergo a regular audit, AICPA-affiliated audit firms must also undergo review with the AICPA’s Peer Review. The Peer Review program is voluntary. However, auditing firms that undergo this review every three years are up-to-date with reporting requirements, and their systems and procedures align with GAAP.

Additionally, since Assurance Dimensions performs hundreds of benefit plan audits each year, we are subject to periodic DOL Audit Quality Engagements to review our work and have received clean reports. Further, Assurance Dimensions is a member of the Employee Benefit Plan Audit Quality Center.

If your audit team participates in the AICPA’s Peer Review program, you can rest assured that your audit will be reviewed according to the highest accounting standards.

Select Assurance Dimensions as Your Audit Partner

Selecting the right audit firm for your organization goes beyond ensuring they have the appropriate qualifications and experience. You’ll want to ensure your auditing firm maintains an open line of communication and is transparent about its pricing structure. Hidden fees can damage your perception of your firm’s credibility, so it’s essential to understand their operating procedures before signing a contract for your auditing needs.

At Assurance Dimensions, we are committed to maintaining AICPA standards and providing independent auditing services. Plus, our competitive pricing structure means no hidden fees or surprises on your invoice.