INSIGHT

How to select a new auditor

David Aiello • April 11, 2025

Services: Audit

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As your business continues to grow, evolve, and face new challenges, the relationship with your auditor should grow alongside you. Unfortunately, many businesses find themselves outgrowing their current audit relationship or experiencing frustrations that suggest it’s time for a change. 

Selecting the right auditor is one of the most critical financial decisions a business can make. A skilled and compatible audit partner does far more than verify compliance — they provide insights that can strengthen internal controls, identify operational inefficiencies, and help navigate shifting regulatory landscapes. The right auditor serves as both a safeguard for financial integrity and a strategic ally in business development.  

Alternatively, an ill-fitted audit firm can result in missed opportunities, regulatory oversights, unnecessary costs, and strained relationships that stifle your company’s progress. With stakeholders increasingly scrutinizing financial reporting and governance practices, the quality and reputation of your audit relationship directly impacts your company’s credibility in the marketplace. 

While changing auditors is a big decision, it’s also a common and sometimes necessary step toward better financial oversight and business growth. This guide will help you recognize when it’s time for a change, what to look for in a new audit partner, and how to facilitate a smooth transition. 

Recognizing when you’re ready to make a change 

The decision to change auditors rarely happens overnight. Instead, it often emerges gradually as small frustrations accumulate into a realization that your current relationship no longer serves your business needs. 

Consider a CFO who found herself repeatedly explaining industry-specific regulations to her audit team — the same one that worked with her company for five years. Or the controller who dreaded the annual audit because of the revolving door of junior staff who seemed to have the same questions year after year, with little institutional knowledge retained. 

These experiences reflect common warning signs that your audit relationship may need reevaluation: 

Your business is outgrowing your auditor’s capabilities 

As your company expands into new markets, adds complex revenue streams, or pursues acquisition strategies, your audit needs naturally become more sophisticated. If your current firm lacks the technical depth or geographic reach to support these changes, you may find yourself educating your auditors rather than benefiting from their experience. 

Communication breakdowns have become more common 

When you find yourself repeatedly frustrated by unclear expectations, surprise deadlines, or difficulty reaching key members of your audit team, these communication issues can signal a deeper misalignment. A healthy audit relationship thrives on open, transparent dialogue that anticipates your needs and respects your time. 

You’re seeking more value beyond compliance 

The most valuable audit relationships offer more than just a signed opinion. The most successful ones provide strategic insights into your industry, identify operational improvement opportunities, and help you prepare for emerging challenges. If your current auditor focuses solely on compliance without offering broader business perspectives, you’re probably missing some opportunities for growth and optimization. 

Qualities that distinguish exceptional audit partners 

Finding the right audit partner involves looking beyond basic qualifications to identify a firm that can truly elevate your financial reporting and business strategy. 

Technical experience with industry context 

The best auditors bring deep technical knowledge shaped by relevant industry experience. They understand not just accounting standards, but how those standards apply within your specific business environment. When interviewing potential firms, ask about their experience with companies like yours — including size, complexity, and industry-specific challenges. 

This experience manifests in practical ways: fewer unnecessary questions during fieldwork, more insightful recommendations about internal controls, and smoother communication with your finance team because everyone “speaks the same language.” 

Technology that enhances human judgment 

The most effective audit approaches seamlessly blend advanced technology with experienced professional judgment. Ask potential audit partners about their technology investments and how these tools enhance audit quality rather than simply reducing hours. 

For example, a modern audit firm might use data analytics to examine 100% of certain transactions rather than just sampling, leading to more precise findings. They might leverage cloud-based platforms that simplify document requests and reduce email traffic. These technological capabilities should make the audit process more efficient while producing deeper insights about your financial reporting. 

Chemistry and cultural alignment 

Perhaps the most overlooked aspect of successful audit relationships is the interpersonal dynamic between your team and the auditors. During the selection process, pay attention to how potential auditors: 

• Listen to your concerns and ask follow-up questions 
• Adapt their communication style to match your preferences 
• Demonstrate genuine interest in and knowledge of your business beyond the financial statements 
• Show accessibility and responsiveness during the proposal process 

Remember that you’ll be working closely with these professionals during some of your most stressful financial periods. Mutual respect and ease of communication will significantly impact your experience. 

Orchestrating a successful transition 

The way you manage the transition to a new audit firm sets the tone for your future relationship. A well-planned handoff minimizes disruption and positions your new auditor for success. 

Strategic timing and preparation 

Begin planning your transition well in advance of your fiscal year-end. This proactive approach allows adequate preparation while ensuring your new auditor has sufficient time to develop a thorough understanding of your business before the first audit cycle begins. 

Your RFP should clearly articulate not just your technical requirements but also your expectations about communication, accessibility, and value-added insights. Be forthright about any complex accounting matters or areas where you’ve had issues with your previous auditor. This transparency helps potential firms provide realistic proposals. 

Facilitating knowledge transfer 

Once you’ve selected your new auditor, consider organizing a comprehensive onboarding session. This might include: 

• A tour of key facilities to provide operational context  
• Meetings with department heads beyond the finance team  
• Access to prior audit workpapers (with appropriate permissions)  
• Documentation of critical accounting policies and judgments 

This investment in knowledge transfer will pay dividends through a more efficient first-year audit and fewer repetitive questions for your team. 

Setting expectations for partnership 

The most successful audit relationships operate as true partnerships, with clear expectations on both sides. During transition, establish: 

• Communication practices that specify frequency, format, and key contacts  
• Milestone dates that account for your business cycles and reporting deadlines  
• A feedback process that encourages honest, two-way evaluation  
• Metrics for measuring relationship success beyond just meeting deadlines 

These foundational agreements create accountability while building trust between your teams. 

Cultivating ongoing value 

The relationship with your auditor shouldn’t go dormant between audit cycles. The best audit partnerships provide value throughout the year with thoughtful engagement and proactive communication. 

Regular touch points keep your auditor connected to your evolving business needs while addressing emerging issues before they become problems. Consider quarterly check-ins to discuss business developments, regulatory changes, or upcoming transactions that might impact your financial reporting. 

Many audit firms offer experience beyond traditional financial statement audits, from internal control assessments to ESG reporting readiness. By understanding the full range of your auditor’s capabilities, you can leverage their knowledge to address various business challenges. 

Ready for a better audit experience? 

Choosing the right audit partner is a strategic decision that impacts not just your financial reporting but your overall business success. At BPM, we bring the technical experience, industry knowledge, and personal attention that growing businesses need from their audit partner. 

Our approach combines technology with human insight to deliver audits that go beyond compliance — providing you with valuable perspectives to guide your business forward. With extensive experience in nonprofit, life science, technology, real estate, blockchain, and consumer business sectors, we understand the unique challenges and opportunities that matter most to your organization. 

If you’re considering a change in your audit relationship, we invite you to start a conversation with our team. We’ll take the time to understand your unique needs and show you how BPM can deliver an audit experience aligned with your business goals. 

Contact BPM’s audit team today to discuss how we can support your organization’s evolving needs.