Choosing the right external auditor for your organisation is an important decision. You’ll work with your external auditors year after year and their insights are likely to be integral to your organisation’s success. How do you choose the right auditor? An external audit should deliver much more than business compliance.
To really add value for your business, auditors must bring the right combination of qualifications, experience, technologies and approach to the task. Here are some capabilities that you should look for.
1. Qualifications
Finding a qualified auditor is a “no brainer” but it is very important and worth stressing. When selecting an auditor, the auditor should have the qualifications to perform the audit. Two key requirements when determining whether an auditor is qualified are; Auditors must be registered and their membership must be up to date with the Independent Regulatory Board for Auditors (IRBA) and they must be independent. Ensure that you verify the auditor’s registration before you appoint them. Verify here.
2. Industry experience
If your auditor has experience within your industry, it will typically translate into a more efficient audit and avoid generic questions being asked. It will also enable them to provide more relevant value-added services and translate their analysis into concrete actions that your business can take. Continuity of audit staff working on your organisation’s audit will also enable a more efficient audit year-on-year.
3. Use of technology
If your auditor isn’t using technology and data analytics to perform your audit, you’re missing out on important insights into your business. Technology can digest entire data sets across large organisations, quickly find anomalies and free auditors to assess their findings, interpret the data, and focus on the business implications. This means you’ll receive more proactive advice and future-focused action items to improve your business operations.
4. Quality assurance processes
Any auditor you choose should be able to demonstrate how they ensure their professional service quality – their compliance with relevant legislative requirements, auditing standards and reporting best practices. For example, are regular peer review procedures in place? Do the audit partners and staff attend regular technical training, professional development in-house and externally?
5. Reputation of the audit firm
Testimonials, references or awards are a good indication of an audit firm’s reputation in the industry.
6. Ongoing support and growth
A good auditor is also a business advisor in regular contact with you throughout the year to bring to your attention matters that are relevant to your business. Agile decision-making often demands real time data. This is where your auditor can help.
While external audits are a regulatory necessity for some entities, a good external audit delivers more than business compliance and reporting results of past financial measures. Your auditor should be a business partner who is able to provide deep analysis, assurance and future-focused business advice. After all, there is a reason that a windshield is so much larger than a rear-view mirror!
Get in Touch
Looking for a suitably qualified and experienced Auditor? Look no further, our firm has the necessary knowledge, experience and skills to assist you with all your audit requirements. Check out our services here.
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