Five key recommendations for maximizing your audit tender process
Prior to 2011, the average tenure of a FTSE100 audit firm was almost 50 years, with the majority of firms never having changed auditors in living memory, some being retained for over a century.
The Competition & Markets Authority’s perception was that the costs of audit were not driven by a truly competitive marketplace, nor were FTSE businesses realising true value or quality of service from their auditor. As such, rules put forward by the Competition & Markets Authority mean that publicly listed companies will now be forced to review their audit service provider.
But...if companies have not reviewed their audit provider in nearly 50 years, how can they be expected to drive value from an audit tender process – let alone choose the right audit firm for their business?
That’s where procurement should come in. However, procurement teams are largely unexposed to the audit market and may struggle to understand the nature of the relationships and decision-making criteria required.
Buying statutory audit is not like buying stationery, engineered products or cleaning services. There isn’t a fixed specification of requirements against which you can objectively assess the quality of the output and reverse engineer the price. Plus, finding the right partner is often more important than getting the best price.
Download this best practices guide which offers 5 key recommendations for maximising your audit tender process, including:
- How to choose the right auditor for your business
- How to drive value in an audit relationship, starting with the tender
- How to ensure you are getting the best talent that your auditor has to offer