How to Choose an Audit Services Firm: A Guide for Businesses

Selecting the right audit services firm is a strategic decision for any business. Whether your company is mandated to undergo a statutory audit, preparing for an IPO, or simply seeking assurance to improve governance and stakeholder confidence, your choice of auditor can influence not just the quality of financial reporting but also your business reputation and operational efficiency.

With so many audit firms available—from global Big Four networks to highly capable mid-tier and boutique firms—how do you know which one is right for your business?

This guide will walk you through the key considerations in choosing an audit services firm, helping you make a well-informed, value-driven decision.

1. Understand Your Business Needs

Before reaching out to audit firms, clarify why you need an audit and what scope of services you require.

Consider:

• Is the audit mandatory (e.g., under Singapore’s Companies Act)?

• Are you seeking a voluntary audit to enhance transparency for investors or lenders?

• Do you need group consolidation audits or special audits for subsidiaries?

• Are there any industry-specific regulations to comply with?

• Are you preparing for IPO, M&A, or grant applications?

Understanding your specific audit objectives will help you match with a firm that offers the right expertise and approach.

2. Determine the Right Firm Size for You

Audit firms vary significantly in size, capability, and clientele.

a) Big Four Firms (PwC, Deloitte, EY, KPMG)

• Global presence and brand prestige

• Ideal for listed companies, large MNCs, and regulated industries

• Higher fees, with strict timelines and formalized processes

b) Mid-Tier Firms (BDO, RSM, Grant Thornton, etc.)

• Often internationally affiliated, with industry specialization

• Competitive pricing and strong technical capabilities

• Great for regional businesses and larger SMEs

c) Local Boutique Firms

• More affordable and flexible

• Direct access to partners and personalized service

• Suitable for SMEs, startups, charities, and small entities

Tip: Choose the firm tier that aligns with your company size, complexity, and budget. A growing SME may not need the Big Four, while a pre-IPO firm may benefit from their brand and network.

3. Check Licensing and Accreditation

In Singapore, only public accountants registered with ACRA (Accounting and Corporate Regulatory Authority) can conduct statutory audits.

Verify:

• The firm holds a public accounting license from ACRA

• The engagement partner is a Registered Public Accountant

• The firm is a member of ISCA (Institute of Singapore Chartered Accountants)

Choosing a licensed and accredited firm ensures compliance with regulatory requirements and professional standards.

4. Evaluate Industry Experience

Every industry has its own reporting, operational, and compliance nuances. An audit firm familiar with your sector can offer:

• Better understanding of industry-specific risks

• More relevant benchmarking and insights

• Faster identification of irregularities

• Valuable business process improvement suggestions

For example:

• Retail and F&B: inventory controls, POS reconciliations, cash handling

• Construction: long-term contract accounting, project audits

• Healthcare: patient billing, regulatory compliance

• Non-profits: fund accounting, donor restrictions

Ask the audit firm for a list of similar clients and case studies.

5. Assess Technical Expertise and Resources

A good audit requires more than just ticking boxes. Look for firms that demonstrate:

• Deep knowledge of Singapore Financial Reporting Standards (SFRS)

• Familiarity with International Standards on Auditing (ISAs)

• Ability to perform audits in complex areas like revenue recognition, leases, tax provisions, and consolidation

• Access to specialists in IT, tax, ESG, and valuation when needed

You want an audit firm that can handle your current operations and support your future growth and expansion.

6. Review Their Audit Methodology

Not all audits are created equal. The quality and efficiency of your audit depends on the firm’s:

• Planning and risk assessment process

• Use of data analytics and audit software

• Approach to materiality and sampling

• Focus on internal controls and process improvement

Ask the firm to explain their audit approach, including how they tailor their work to your business, how they handle timelines, and how they communicate issues.

7. Check Reputation and Track Record

An audit firm’s reputation matters—especially when your audited statements are used by external stakeholders.

Look for:

• Online reviews or client testimonials

• Referrals from your business network

• Recognition from professional bodies (ISCA, ACCA, etc.)

• Years of experience in the market

• Whether they’ve been subject to regulatory sanctions or complaints

Reputable audit firms provide a stamp of credibility that enhances your financial reporting’s trustworthiness.

8. Evaluate Communication and Responsiveness

A good auditor is also a good communicator. Throughout the engagement, you’ll need a firm that is:

• Responsive to emails and queries

• Clear in explaining audit findings and adjustments

• Proactive in flagging potential issues

• Willing to guide your finance team in meeting documentation requirements

Ask: Will you have access to the engagement partner or audit manager? How quickly do they respond to client concerns?

Great audit relationships are built on open, timely, and professional communication.

9. Consider the Cost—but Don’t Choose Solely Based on Price

Audit fees typically depend on:

• Company size and revenue

• Number of entities consolidated

• Industry complexity

• Expected time commitment

• Travel or outstation requirements

While it’s wise to request multiple quotes, avoid choosing the cheapest option blindly. Low-cost audits may compromise on quality or increase the risk of non-compliance.

Instead, evaluate value for money:

• Are they offering fixed fees or hourly billing?

• Is tax computation or XBRL filing included?

• What services are chargeable as extras?

Choose a firm that offers transparent, competitive pricing with a strong reputation for service and accuracy.

10. Look for a Long-Term Partner

Audit is more than an annual obligation—it’s a long-term relationship that evolves as your business grows.

The right firm will:

• Understand your operations and history over time

• Provide continuity in audit staff or manager

• Offer insights beyond compliance (e.g., internal control suggestions)

• Guide you through regulatory changes

Switching auditors frequently can create disruption, higher costs, and skepticism from banks or investors. Choose a firm you can grow with over time.

Conclusion: Choose Smart, Choose Strategically

Choosing an audit services firm isn’t just about meeting statutory requirements—it’s about adding value, reducing risk, and enhancing financial credibility.

Here’s a quick recap of what to consider when choosing your audit firm:

Ultimately, the best audit firm for your business is one that offers a balance of competence, cost, responsiveness, and long-term value. Take the time to evaluate your options, meet the teams, and choose a partner that aligns with your company’s goals.

Audit PAC https://kohlimaudit.sg/