When it comes to auditing firms, companies tend to stay with the same one for an average of 15 years. However, there are times when a change is necessary. According to Jeff Burgess, national managing partner of auditing services at Grant Thornton, the most common reason for a switch is service-related. Nicole Hallas of Audit Analytics also found that companies with higher revenues are more likely to retain their auditing firm for longer periods of time.
Changing auditors can be a daunting task, and it's important to understand the pros and cons of doing so. It's also important to be aware of any difficulties the old auditing firm may have had in doing its work during the previous three years. The management and auditing committee should ensure that they are aligned with any changes in approach, timeliness and access they seek with respect to the new firm. It's also important to be transparent with stakeholders about the change and to share the approval of your audit committee.
There are several reasons why a company might decide to switch auditors. For example, the company may have grown beyond the capabilities of the old auditing firm or may be looking for an auditor who charges less. It's important to consider all factors before making a decision.
