Audit Services and Accounting firms: How to tell if an Outsourced Audit Services Partner is required
Auditing services is an accounting discipline with precise methodologies and complex legislative requirements that you simply can’t afford to approach haphazardly or dismiss. There are so many issues to consider including severe consequences for both client and the auditor, for inaccuracies or breaches of relevant standards and legislation.
Such are the complexities (and risks), that many Accounting professionals have specialised in Audit and developed expertise (over a life long career) required for complete assurance of a quality outcome, in accordance with auditing and accounting standards.
Any accountant or accounting firm that finds Audit work: difficult, inconvenient, unprofitable or a ‘pain’ to do – but recognise its an important on-demand service to offer – can look to partner with an Australian based specialist Audit firm, rather than ‘palm’ it off to a mid-tier competitor (that could potentially ‘poach’ your clients).
Here are 14 signals for Accountants that it’s time to partner with an Outsourced Audit Services provider, to work with you and your team deliver quality Audit & Assurance services to your clients:
- If you or any team members does not have any strong Audit background or expertise.
- Neither you, nor any team members have no interest in Auditing.
- If no one from your practice does not regularly attend Audit or Assurance Professional Development courses or webinars.
- If you don’t know or keep up to date with the 60 current mandatory audit / assurance / review standards formulated by the Auditing and Assurance Standards Board (AUASB).
- If you’re unaware of the 21 specific auditing guidance statements and don’t know how to use them appropriately.
- If you’re unsure whether or not you comply with APES 110 independence requirements.
- If you’re not a genuine independent auditor (consider SMSFs, Trust A/Cs, QBCC, NFPs etc.)
- If you didn’t know that if its impossible to satisfy the mandatory professional independence requirements if one public practice certificate holder is the auditor and tax agent for the same entity or related entities.
- When the audit work needs to be done, it becomes an interruption to other business services work that people are better at, and enjoy doing more than audit.
- If your accounting services work is more profitable than the audit work undertaken.
- If you do any insolvency work.
- If the Audit work you complete add to the risks you take and your PI Insurance premium in a manner that is out of proportion to the benefits the audit work brings.
- If you feel more comfortable for your audit work to undergo a Quality Control Review.
- If you don’t refer audit work to someone outside of your firm for fear of clients being poached or clients leaving your firm.
If any one or more of the above statements apply to you, then you should consider finding a reliable and trusted supplier of Audit services.
A word of caution though: the danger of referring clients directly to bigger Accounting firms (who happen to also do some Audit work) is there is the real possibility of these firms – your competitors – stealing your clients.
Naturally, your clients would in time discover they can get all their accounting and audit requirements met under the ‘one roof’, and so the next you hear of them, is via the dreaded ethical letter from their new accountant.
There is however, an alternative solution, one that would give you peace of mind and full control of client relationship. This solution applies to any accountant or accounting firm that finds Audit work: difficult, inconvenient, unprofitable or a ‘pain’ to do, but still recognise its value and importance to offer clients (but worried about referring audit work to another accounting firm).
You could look to partner with an Australian based specialist Audit firm, rather than ‘palm’ it off to a mid-tier competitor.
A specialist Audit firm has a complete team of experienced Audit professionals who not distracted with other accounting assignments. We focus solely on empowering Accounting firms to provide a reliable and quality audit service offering to clients.
Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.