|
Reasons for Selecting and Switching Auditors
Addams, L. H., Davis, B & Mano, R. M.
Journal: CPA Journal, April
Publication Date: 1996
Published by: New York: New York State Society of Certified Public Accountants
Document Type: Web Publication
What are companies want from their auditors?
The paper presents a comparative analysis of the reasons for selection and dismissal of external auditors by private and public companies. Using the results of this analysis, it attempts to identify the areas of improvement for auditors.
Using data from a survey conducted amongst private and public companies, the paper states that the most important criteria for selecting auditors:
- Private firms: personal relationship established between the key people of the auditing firm and the company's decision-makers during the course of the proposal process.
- Public firms: the technical expertise, which is the quality of the auditing firm's service team to be used in the engagement.
The paper also lists and ranks the criteria which are used in the selection decision for auditors.
Similarly, the paper presents the reasons because of which auditors are dismissed:
- Public companies: the fee charged by the auditors,
- Private companies: the passivity of the auditors.
Listing and ranking the reasons for dismissing auditors the paper concludes that though significant training time is spent in developing auditor technical acumen, more time should be spent in developing personable, communicative auditors.
| 
View this Document
Email this Document
