How to choose an auditor: Four key factors to consider

Reviewed and updated March 2026.

Running a business comes with certain important responsibilities. One of those is ensuring your audited financial statements are on track for either a statutory filing requirement or for other purposes as required by the business.

Finding a suitable auditor can be extremely challenging in the current economic and regulatory environment, especially if you don’t know where to start. We’ve put together four key factors to consider when looking for a suitable auditor.

How to choose an auditor

Screen your audit partner

• Choosing the right auditor is a strategic business decision and should be approached like selecting any long-term business partner.
• Implement a structured auditor screening process to ensure the firm and Audit Partner align with your business requirements.
• Assess the Audit Partner’s competence, technical expertise, relevant audit experience, and understanding of your industry and business model.
• Strong capability and sector knowledge support a more efficient audit process and consistently high audit quality.
• An auditor with deep industry expertise can identify risks and opportunities, share practical insights during the audit, and add value beyond statutory compliance.

Review your audit firm

• When selecting an auditor, it is essential to assess not only the individual Audit Partner but also the audit firm they represent.
• With a range of firms in the market, the strongest firms can often be distinguished by their ways of working, commercial mindset, and commitment to regulatory requirements and audit quality standards.
• A well organised audit firm with accessible Audit Partners who are available to discuss key matters and accommodate your preferences can be a critical factor in the decision making process.
• The strength and longevity of an audit firm’s client relationships often reflect the quality of its service and can be assessed through the number of years the firm has worked with existing clients. Take a look at how we add value here.
• Requesting client testimonials or references can help you better understand the audit firm’s working relationships and the value it derivers across different industries.

Ask about the approach

• The best auditor combines individual capability with suitable firm, offering fair pricing while bringing together the right skills, tools and resources to deliver the audit within the agreed time frames.
• Effective audits balance human expertise with technology, using tools to analyse business information and support a risk-focused approach.
• A risk-focused audit enhances efficiency and quality, while helping you better understand business risks, internal processes and controls.
• Insights from a high-quality audit enable timely, informed business decisions.

Do your own research

Finding the right auditor can be a daunting process, but investing in the time to carry out your own research and assessment, keeping in view the four key factors explained would hopefully assist you in landing towards a long lasting and successful business relationship with the auditors.

The selection process

Listed, large or complex entities would typically follow the following process:

1. Align the scope and deadlines: Confirm the audit type (statutory, group, subsidiary, special purpose) and any lender, regulatory, or reporting timetable requirements.
2. Set governance and decision owners: Agree who runs the process (CFO/FD, Audit Committee, Board) and what approvals are needed.
3. Issue a short Request for Proposal (RFP) pack: Share the essentials, business overview, group structure, systems, key risks, deliverables and timeline. Define key selection criteria (e.g., independence, capacity, sector expertise) in the RFP.
4. Shortlist and run Q&A: Reduce to two to four firms, share key information and hold structured Q&A sessions.
5. Review proposals and meet the teams: Assess approach, risk focus, team quality, timeline, deliverables and transparent fees (including out-of-scope rates).
6. Reference checks and appointment: Speak to relevant referees, select the preferred firm, agree terms and complete formal appointment step.

Mid-size and small entities with simplified governance structures will typically follow the following process:

1. Confirm what you need and by when: Audit type, reporting deadline and any lender requirements.
2. Choose your key criteria: Typically responsiveness, sector fit, right-sized team and a clear fee structure.
3. Quick market scan to shorlist: Create a shortlist of two to three firms based on fit and availability.
4. Share a short brief and have a call: Provide background, systems, timetable and any known issues, then do a focused Q&A call.
5. Compare proposals and pick the best fit: Look for a practical approach without compromising on quality, a team you trust and no surprises on fees.
6. Reference checks and appointment: Speak to relevant referees, select the preferred firm, agree terms, and complete formal appointment steps.

FAQs

Do we need a statutory audit, or will a review/assurance engagement be enough?

It depends on legal requirements and stakeholder needs.

How do auditors decide materiality and what does it mean for the audit?

The auditor sets materiality based on size and risk, which drives the extent of testing and focus areas.

How are audit fees calculated and what drives the cost up or down?

Fees reflect expected hours and risk, driven by complexity, controls, timelines, and quality of records.

What questions should we ask in the audit pitch meeting?

Ask about risks, audit response, team roles, timetable, communication, and handling of issues.

Should we choose a local audit firm or a larger national/international audit firm?

Choose the audit firm that best matches your complexity, locations, and stakeholder expectations.

Are any businesses exempt from an audit?

Yes, a small percentage of businesses are exempt from an audit, find out more here.

How Gerald Edelman can help?

If your business is looking for an auditor and you are still unsure after considering the factors above, please reach out to one of our experts for an introductory call to see if we are the right auditors for you.