Ask Timpo: How often do you change auditors?
Q: There is much insight to be gained from a good audit firm, yet we often end up with the junior dogsbodies and very little added value. Should I look for a new audit firm?
"Use at least two audit firms
"to give you a range of skills," says John Timpson
A: Don’t get too hung up about the audit. There are bound to be one or two junior accountants among the crew that take over one of your offices and invade the canteen. If you have to rely on their figures, there must be something wrong. Your finance department should not get any surprises, nor should the chairman.
It is the contribution made by your audit partner that matters most – they should be able to use good tax planning to help your cash flow.
By selecting an auditor, you gain entry to a multi-consultant with a whole range of advice at the end of the phone. But get a quote before the clock starts ticking (possibly at hundreds of pounds an hour). Many companies are persuaded to change auditors by a more competitive fee structure.
With such a big range of services on offer, accountancy firms are bound to have some outstanding specialists, but they will not be experts in every area. It is wise to use at least two firms to give you a range of skills and the chance to compare prices.
Don’t be mean, the price is not as important as the skills and personality of the audit partner. But be warned: the partner must move off your audit after five years. That is a critical time – make sure you are happy with the successor, if not, it may be time for a change.
Picture: source