Skip to main content

Selecting a Audit / Accounting Firm

Selecting an Audit firm for internal/financial audit or small assignments may be time consuming and challenging. I found few pointers on ACCA website:



Recommendation

  • ask business colleagues if they would recommend their accountant
  • ask your bank manager or solicitor
  • ask an adviser working for a Business Link (England), Local Economic Development Unit (Northern Ireland), County Enterprise Board (Republic of Ireland), Business Shop (Scotland), Business Connect (Wales) or the Chamber of Commerce.

Questions to ask the accountancy firm

  • how many partners are there in the firm?
  • how many clients does the firm have?
  • who will undertake the work?
  • what are the typical response and advice times to be expected?
  • what are the scales of charges and rates for partners and staff?
  • what is the firm's estimate of fees?
  • what expertise can the firm supply?
  • is it possible to speak to existing clients of the firm?

Select a short list of firms

  • arrange meetings with at least three firms
  • present the requirements/shopping list and a brief summary of the business
  • interview the firms; look for a firm that will add value to the business. Look for a firm that plans ahead, will look at future business development and will listen to and respond to business and personal aims
  • having selected a firm it will then issue a letter of engagement. This document is a contract between you and the accountancy firm which details, amongst other things, your responsibilities, the firm's responsibilities and the basis on which fees will be charged.
perpective

Source: Universe: A Matter of Perspective

Other pointers for selecting a Accounting firm for small assignments are:

1. First consider what services you might need from an accountant.
2. Determine the expertise you need, verses the knowledge you have.
3. Be realistic about your (or your organization's) knowledge of accounting.
4. Accessibility and Service Levels. What's right for you?
5. Don't Underestimate the value of a Certified Professional.
6. Getting your Ducks in Line.
7. Examining your Options.
8. Make it Happen!

Source: Hunter Group


Save with BUDGET car insurance.




Cheers,

Santosh Puthran

Add to Technorati Favorites

Do you like to be updated in Accountancy ?

Subscribe to Management Accountant by Email


Or

Subscribe in a reader


SAP Store, UK


Visit MA Stores ? You will find something you are looking for ....

Management Accountant Store, US - Powered by Amazon
Management Aaccountant Store, UK Stores - Powered by Amazon, UK
Digital Store, US



You may also like to read
  1. Practising ICWAI Members Directory
  2. Directory of ACCA Firms
  3. Directory of ICAEW Firms
  4. Find a CPA
  5. Tips for website for Accountants in Practise

Subscribe to RSS Feeds and be up-to-date
  1. Management Accountant
  2. Accountancy News
  3. My Favorite Blogs that I track
  4. SAP Jobs & Opportunities
Post a Comment

Popular posts from this blog

Throughput Accounting

Throughput accounting (TA) is an alternative to cost accounting proposed by Eliyahu M. Goldratt. It is not based on Standard Costing or Activity Based Costing (ABC). Throughput Accounting is not costing and it does not allocate costs to products and services. It can be viewed as business intelligence for profit maximization. Conceptually throughput accounting seeks to increase the velocity at which products move through an organization by eliminiating bottlenecks within the organization.


Cost (or Management) accounting is an organization's internal method used to measure efficiency. Since no one outside the organization uses such internal accounts for investment or other decisions, any methods that an organization finds helpful can be used.


Throughput accounting improves profit performance with better management decisions by using measurements that more closely reflect the effect of decisions on three critical monetary variables (throughput, inventory, and operating expense — defin…

Learning Curve Theory

Learning Curve Theory is concerned with the idea that when a new job, process or activity commences for the first time it is likely that the workforce involved will not achieve maximum efficiency immediately. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. Eventually the learning process will stop after continually repeating the job. As a consequence the time to complete a task will initially decline and then stabilise once efficient working is achieved. The cumulative average time per unit is assumed to decrease by a constant percentage every time that output doubles. Cumulative average time refers to the average time per unit for all units produced so far, from and including the first one made.

Major areas within management accounting where learning curve theory is likely to have consequences and suggest potential limitations of this theory.


Areas of consequence:
A Standard Costing

Resistence to Change - Approaches of Kotter and Schlesinger

The Six (6) Change Approaches of Kotter and Schlesinger is a model to prevent, decrease or minimize resistance to change in organizations.
According to Kotter and Schlesinger (1979), there are four reasons that certain people are resisting change: Parochial self-interest (some people are concerned with the implication of the change for themselves ad how it may effect their own interests, rather than considering the effects for the success of the business)Misunderstanding(communication problems; inadequate information)Low tolerance to change (certain people are very keen on security and stability in their work)Different assessments of the situation (some employees may disagree on the reasons for the change and on the advantages and disadvantages of the change process) Kotter and Schlesinger set out the following six (6) change approaches to deal with this resistance to change: Education and Communication - Where there is a lack…