How to Choose the Right Auditor

Step 1 – Prepare an RFP

Step 2 – Send the RFP

Step 3 – Review Proposals

Mahoney’s Rubric for Reviewing Proposals

• Qualifications – The auditor must be a licensed CPA firm and be independent.  
• Reputation – Review the firm’s reputation by contacting their references, reading their website, etc. 
• Experience – You will want an auditor that has experience in your industry.  Ensure that this is included on the RFP and again reach out to the references given to you in the proposal for their opinions on the firm’s experience. A word of advice – “bigger isn’t always better”. A larger firm may not be what you need.  Smaller firms can have just as much experience if not more than a bigger firm and you generally receive more personal service than you would with a big firm.
• Approach – The approach the firm is using is also important. You will want to select a firm that is current on technology and is willing to work with your timeline to complete the audit.
• Fees – Fees are an important factor, however they should not be THE deciding factor. As people say “you get what you pay for”. Just because a firm that responded to your RFP has the lowest fee, it does not mean that is the firm you want to choose. An audit involves a substantial amount of work and you want quality work, so the cheapest fee is not always the best fee.  Alternatively, the most expensive fee may not always give you the highest quality audit.
• Peer Review Report – This is an external review of a CPA firm’s quality control system in auditing and accounting. The peer review is to be educational for CPA firms to further enhance the quality of their performance.

Step 4 – Choose Your CPA Firm