Hi - I am in a new role and am required to appoint a new auditor for the company. I'm not really sure how to go about this. Is there a basic checklist of questions to ask / things to watch out for?
Generally the Members in General Meeting appoint the Auditors so is this the first appointment?
Given that Auditors didnt save the banking business their overall role is in fact questionable. They form an opinion on the truth and fairness of the accounts and their responsibility is to the Members (as in shareholders). Have you other stakeholders?
If you hire e.g. PwC (or any large firm) they charge huge fees - but international associates if you need them for investment may want that. They won be offering much by way of any advice unless you pay them.
If you want 'bang for buck' you want somebody outside the big 20. These have large overheads to recover.
You are new to the role and have been asked to appoint a new auditor. Couple of questions for you:
Is there a previous auditor? Did they resign?
Is there a previous treasurer of your organisation? Did they resign?
Does your company need an auditor? Is it late with its annual return, a company limited by guarantee, can't get the audit exemption because it t/o is too high?