RULES FOR CHOOSING OF AUDIT COMPANY: CHECKLIST
Series of medium and large enterprises whose management did not know what an audit is previously would need to have confirmation of their financial statements based on the results of the audit, starting with the reporting for 2018. The Act of Ukraine «About Accounting and Financial Reporting in Ukraine» determines it. The management of such companies may have a problem already: how to choose an audit firm, what to pay attention to?
The first opinion of searching of the audit firm, as anything else is to turn to Google or another search engine. Within seconds you will see hundreds of results. And what we have to do the next? When we are doing choosing something else, the main criterion for most users is the price. In the case of an audit, the price on the site, in most cases, audit firms do not specify. And it is normal practice. It is because, it can be calculated only with customer’s information. Even if there is a minimum price of audit on the company's website, this does not mean that it is the cost of services for your company. In most cases, it will differ from the minimum in a big way.
So, to select the auditor, who will provide quality services on a regular basis, we propose the following steps:
- Make a "big list" of auditing companies. For this purpose it will be useful an information from Google, and from the website of the Audit Chamber of Ukraine (ACU). There are a complete list of audit firms of Ukraine in terms of regions, as well as the list of firms that have the right to make a required audit of financial statements on the UBA’s website.
- Analyze sites of audit firms from the selected list. From them you can find out, how many years the audit firm has been operating in the market, whether it has passed quality control (availability of the corresponding Certificate), how many employees it has, and which is they qualify.
- According to the Law "About audit of financial statements and audit activity" for required audit firm must have at least 3 certified auditors and for auditing public interest entities (besides small) - 5 certified auditors, 10 experts charged involved in the audit, of which 2 must have a document confirming knowledge of IFRS.
- Analyze the clients of audit firms. Among them there are your partners, contractors, acquaintances perhaps. Contact them and find out about the experience of cooperation with auditors.
- Make a "short list" of audit firms based on the results of the analysis and contact them. Based on your company’s data, they will provide their commercial offerings regarding the cost and duration of the audit.
- Visit a certain number of potential auditors. You will see their office, feel the atmosphere that prevails in the team, face to face talking with people who will become your trusted partners in the future.
Just remember: the price is important, but not the main thing.
The main things are – quality, trust and honesty!