A move to a new Auditor can be difficult
Selective screening is often required when choosing the right External Auditor for your organisation. Such a move can be a difficult task because once selected, moving away from your auditor can be an even harder task than choosing the right one in the first place. There are various reasons for this.
Some of the obstacles in transitioning away from your external auditor are:
The time required to transfer knowledge of the business to the new auditor
Such a transfer can be time consuming, and it is not just a matter of sharing the facts and figures, the business plans and expenditures. And it is not only about relaying everything there is to know about your business. Relaying knowledge of your business to the auditor is also about getting a ‘feel’ of your business, about understanding the intricacies of your business aims and how you like the business to operate, and about gaining knowledge of your experience of the business.
Building rapport between the audit team and management, and especially the finance team
You want an external auditor you can work with, and who has an understanding of how to best work with you. You want them to be able to relate well to your staff and the leaders of your teams, and … It is worth making a shortlist of what you are seeking in an external auditor and checking off the points.
Transferring and setting up the financial data for the new auditor’s file
Bringing on-board a new External Auditor is always a tedious and time-consuming job. You need to ensure this is carried out efficiently and within time parameters.
Notifying regulators and complying with the mandated procedures
You must also ensure compliance with all new guidelines and parameters as explained by the new external auditor.
At Accru Melbourne, we pride ourselves on our ability to make this transition seamless. We understand the obstacles and pain points in transitioning away from your external auditor and taking the following steps to assist you in this transition. We:
- Assist management in the preparation of appropriate forms, where necessary, to file with the regulators advice regarding using the change in auditor.
- Contacting the departing auditor through an ethical clearance letter.
- Organising an audit file review with the departing auditor, a review in which, where considered necessary, you will be able to obtain assurance over the opening balances.
- Setting up Cloud portal logins for our clients to assist in the exchange of data.
- Setting up an audit file and preparing the necessary documents such as engagement letter.
- Obtaining the opening trial balance to import into our audit software to allow early planning for the upcoming audit engagement.
- Remaining in regular contact with our clients to address any queries or questions they may have in relation to the upcoming audit engagement including those related to financial reporting technical matters.
- Organising a planning meeting between key management and finance personnel in which the Audit Director and Audit Manager ensure the audit process runs smoothly with no surprises.
The above steps ensure that the transition to a new External Auditor causes minimal disruptions to our clients’ operations and the finance team.