Tax audits are a business’ and employer’s worst nightmare. While these investigations are not that common and are surely unusual, it’s best to prepare for them in order for everything to go smoothly. Auditors are required to check internal records of a business where the books don’t add up. If something isn’t right and the IRS is knocking down your door, you should consult your accountant or auditor right away and probably seek an external auditor too.
The good news is that the market has been diversified, so it’s pretty easy to find an audit firm. Of course, you shouldn’t hire one that you’ve just found the number to. You need professional auditors to check your records and give you an assessment that will keep your business alive.
In this guide, we’ll tell you more about finding the right audit committee who has the expertise and knowledge of performing a clean overview of your books.
When to Seek an Independent Audit?
Auditing can be a great way of assessing your business’ financial competency. It can help you recognize its potential and see what areas need to be improved for it to grow further. In the simplest terms, an audit is an evaluation of your company’s financial statements.
In some cases, you will need an audit if (god forbid) your financial records don’t add up. An independent audit firm can evaluate what’s wrong and give you a clear idea of what you need to fix. By fixing the books, you’ll be able to keep your business clean and continue growing your business.
How to Choose the Right Auditor?
Selecting a proper audit committee and firm is not a simple process. That goes double if this is your first time with audits. New business owners will rightfully be confused by the steps that follow. Where do you find an auditor? How do you hire it? What are the criteria for finding the right audit firm?
While audits are different depending on your business, there are a few tips you’ll find below that will help you do the right thing.
Licensed and Registered Company
It goes without saying that you should only pick a licensed and registered company for your audits. You will want your audit to have the best possible outcome, and you can only do that by choosing a reputable company.
If you don’t know where to start, Ageras is a good choice. It’s the easiest way to find licensed audit and accounting companies, so you can use the service to find yours.
When choosing an audit firm, make sure it has no black spots on its record. Any suspensions or disciplinary actions should be a red flag to look further. The State Board of Accountancy can provide records on such information and should tell you what you need to know.
Make sure the firm you’re choosing has an active AICPA certificate. Specialized auditors may also have additional certification such as the CFE which can be of help to many companies.
Great Peer Review Reports
Ask the candidates shortlisted to send you a document copy of their most recent reviews. If they’ve been active with audit reports in the past year or so, peer reviews can tell you a lot of what you can expect.
Thorough and Clean Process
When choosing an audit firm, you can ask them to provide a detailed overview of the QA process they use. Don’t hesitate to make them spell it out. After all, you’re looking for an excellent audit firm that will help you overcome any obstacles you’re facing.
While choosing an auditor is no easy job, we hope that our tips have helped you find the right firm. The good news is that there are plenty of companies out there that can help, and the Internet is full of peer reviews that will tell you what you need to do.
Follow the tips above, choose an audit firm, and we hope that everything will go as planned.