How to Choose Your Auditor

Successful operation of your business depends on how effectively you manage and organize its financial records. This is where the service of a financial auditor becomes very important. As a financial expert, an auditor is able to analyze your financial records and bring out your business’ true financial strength. There are also other services that an auditor is better positioned to offer you for the benefit of your business.

Like in every other jurisdiction, operating a business in Singapore requires that you have your business accounts audited. It is actually mandatory for companies in Singapore with threshold annual revenue of S$5 million and above to engage the service of an auditor. Even though your business is exempted from this requirement in case its annual revenue is below this threshold, it pays to have your business accounts audited. Having your business accounts audited makes it easy for you to have proper control of business finances. Furthermore, auditing adds the value of credibility to your business and assures your business associates and financial institutions that your business is sound. This goes a long way in opening up lines of credit facility.

As important as an auditor can be, it is necessary that you know how to choose the best. Below are just some of the ways through which you can choose your auditor:

Licensing

Because financial institutions rely on properly audited businesses when analyzing a business’s finances for the purpose of extending lines of credit, you need to engage the service of an auditor who is properly registered and licensed to provide auditing services. All auditing firms in Singapore are not only registered but also licensed to provide auditing service in the country by the relevant authority. Their registration and licensing is enough proof that they have the necessary qualifications to provide the service.

Independence

For an accurate business audit report, you need to engage the service of an independent auditing firm that does not have any connection or interest in your business. Engaging the service of a firm with some interest in your business may not bring out the true position of your business because of the interest that lies therein.

Services

It really pays to engage the service of an auditing firm in a better position to provide you with extra services in addition to auditing service. Choose an auditor who can suggest to you practical ways on how you can properly manage your business accounts in case the auditor discovers accounting control gaps in the course of auditing.

Referrals

The fact that auditing firms in Singapore are registered and licensed to provide auditing service in the country should not be the basis of choosing one. You need to seek referrals from your business associates and financial institutions in order to be able to choose an auditor of good repute and highly reliable.

Time/cost

Like in any other jurisdiction, auditors in Singapore charge auditing fees as set in law. Charges however vary depending on amount of work involved. You need to choose an auditor who is not only affordable but provides quality service as well. You also need to ascertain the time an auditor is likely to take to complete work.

Having your business accounts audited should not only for the purpose of meeting legal requirement. There is a lot you can do with your audited business accounts. The above are certainly some of the ways through which you can choose your auditor.