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Selection of Audit Firm

All audit firms are not alike. And even within the audit firms, all partners are not alike.

By working with many firms, we have a unique insight into how the firms work. Using this knowledge, we can match the needs of the company with the audit firm and partner within that firm that is most suitable.

Alternatively, we can interview audit firms identified by the company and help the company assess which one is most suitable.

Important considerations are:

Fees

  • Quoted total
  • Fixed fee or time and materials
  • Firm’s reputation for going over budget and charging overrun fees

Size of Firm

  • Do they have enough staff to get the work done timely?
  • Who does the work?
  • Who reviews the work?
  • How many layers of review are there?

Technical

  • Are they more principles-based or rules-based?

Quality of research staff

  • Is there a national office or designated technical partner?
  • How many restatements have they had over the last several years?

PCAOB Status

  • What was the result of the last PCAOB review?
  • Is there anything that indicates they’ll have trouble during the next review?

Chemistry

  • You will be working closely with this firm. Do you like the people?