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Changing Accountants

  • 08-10-2007 1:08pm
    #1
    Talk Cents
    Closed Accounts Posts: 11 ✭


    The company I work for is considering changing the accountancy practice they are using from a Big 4 firm to a smaller co.
    Basically they aren't satisfied with the service they are receiving and that with a smaller more local firm the service will improve.
    What is the normal practice of changing accountants and can the business be tendered for, etc?
    Many thanks in advance for any advice.


Comments

  • #2
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Talk Cents wrote:
    The company I work for is considering changing the accountancy practice they are using from a Big 4 firm to a smaller co.
    Basically they aren't satisfied with the service they are receiving and that with a smaller more local firm the service will improve.
    What is the normal practice of changing accountants and can the business be tendered for, etc?
    Many thanks in advance for any advice.

    Quick question - What's the approx turnover & profitability of your company?

    You can change your accountant/auditor whenever you like. Your previous auditor reserve certain rights (I won't bore you), but these are usually technicalities.

    You can of course get an other company to quote a price for the work when you contact them.


  • #3
    Talk Cents
    Closed Accounts Posts: 11 ✭Talk Cents


    Thanks,
    Turnover is approx €20m, business is high turnover, low margin, company will not make a profit in 07. I am pretty sure we are paying plenty for the service we are receiving. The company is relatively new formed in 05. I was just wondering what the protocall is re. approaching prospective auditors, how willing they are to taking on new clients?


  • #4
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Hi,

    At least at 20m t/o you were in the market for a big four. I imagine you'd be looking at a large mid-tier company.

    I think you've a bit too much reverence about the auditing profession. You should treat your audit like any service - who can provide the best service for the best money. At the moment you're possibly at a consolidation stage, and are watching the below the line expenses.

    Any mid-tier audit company will be biting at the bit to provide you with a service, and why wouldn't they - you're doing them a favour. Make sure you're up front that cost is an issue.

    Good luck.


  • #5
    kluivert
    Registered Users, Registered Users 2 Posts: 2,399 ✭✭✭kluivert


    You need to interview the proposed firm to ensure that the firm has the resources and technical capabilties to provide an audit opinion on your company.

    IFAC have guidlelines for practices as to the type of work they should and shouldnt undertake.

    I dont think this an issue once the audit partner as relevant experience.

    I use to work in a small practice who had large clients, and the techincal expertise of the audit ment that they where able to conduct the audit efficently and adequately, the audit manager worked and trained with Deloitte & Touche and he knew his stuff inside out.

    I learned more about accounting and auditing from this gentleman than I did in Uni.

    So it depends in my opinion whether the practice has the capabilities to perform an audit for your company.


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