June 7, 2019

Signs It’s Time to Change Audit Firms

Atlanta business owners have several responsibilities to focus on, from directing the management team to supporting employees and maintaining focus on the strategic objectives and growth goals of the organization. It’s clear to see time is precious, and when not used properly, it can be a precious resource that is wasted. That’s why a difficult relationship with the company’s financial statement auditor can be so challenging. A relationship that is characterized by poor communication, missed deadlines and an inflexible approach may be signs that a change is needed. While there are certainly challenges in every relationship, business owners need to candidly evaluate their relationship to determine if a change is needed. To help clients, prospects, and others, Wilson Lewis has compiled a list of red flags it’s time to change audit firms.

• Just Another Number – When you call your auditor, what happens? Do they seem happy for the opportunity to connect? Are they able to recall your company’s challenges, opportunities, and struggles? Or do you feel like just another client? A great auditor will want to forge a relationship, and they will do that by building mutual trust. If the audit firm makes you feel like another number, then it may be a red flag it’s time for a change.
• Missed Deadlines – When an auditor respects deadlines, they are respecting you. An audit plan is not only designed to identify what part of the company’s financials will be tested, but should also provide important benchmarks and deadlines for both parties to meet. It’s imperative the auditor keep the team involved through the process and invested in their work. When the auditor misses deadlines without acknowledgment, comment or makes excuses for late deliverables, it may be a red flag it’s time for a change.
• Lack of Communication – The auditor should be the first one to call you when a new accounting pronouncement, tax regulation, or local legislation is passed. Changes in these areas can have an impact on your audit, and it’s essential to be updated when this happens.  If information on such changes is regularly coming from sources other than the audit firm, then it may be a red flag that it’s time to change.
• Absence of Value-Added Recommendations – A good auditor will perform a flawless audit, but a great auditor will go one step further. The auditor you want in your corner is one that will add value to the organization. A practitioner has access to even the smallest details in the financial statements and is intimately familiar with business practices. They should be regularly providing you with value-added recommendations that help utilize resources more efficiently. If your auditor simply does their job and then puts you out of mind until next year rolls around, it may be a red flag it’s time to change audit firms.

Contact Us

If you are experiencing these issues with your current auditor, then it may be time to act. Consider directly addressing these issues with them to find solutions that best meet your needs. If this is not possible, then it may be necessary to begin the search for a new provider. If you have questions about the information provided above or need assistance with an audit or tax issue. Wilson Lewis can help. For additional information please call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.