How to Get the Most Out of Audit Firm Interviews

You have done everything right, prepared a request for proposal (RFP), obtained a list of prospective audit firms, received proposals from the audit firms, and narrowed your choice down to the top three to conduct live interviews. Now the most important step: how to conduct successful interviews to help ensure the “best” selection is made.

I believe the live interview process is the most important step in finding a match for an audit firm that aligns with your organization’s business model, service industry, types of funding, and  culture (how your organization conducts business, governance and communicates). I left out “well-qualified audit firms” as an objective because all audit firms that you had on your RFP list should have already met this criterion or they should have not been included.

To get the most out of the live interview process, you need to invest in up-front planning and preparation. Time and efforts here will directly impact how successful the interviews will be and optimize your final selection choice.

Incorporate the following tactics into your live interviews to level the playing field and glean the most useful information that will help the audit committee with making a final selection.

1.         Discuss and Set Interview Protocols to be Followed 

To ensure a level playing field, it is important for the audit committee to have carefully considered interview protocols. Once these protocols are established, they should be followed in the same manner for each interview.

Protocols to consider should include assigning who will take the lead and making sure each audit committee member is allotted time to participate. Date and time allotments should be set in advance for each interview and give thought to how scheduling issues will be addressed.

2.         Develop a Standard Agenda to Use for Each Interview

The agenda will be the road map. Develop an agenda that is the same for each interview and follow it without deviation. Include time allotments for each agenda item and share the agenda with the audit firms early so they can prepare accordingly. Let them know the time allotments will be enforced.

3.         Limit Firm Background and Audit Approach Discussion Time

Keep firm background and audit approach time allotment to 10 to 15 minutes. This information should mostly come from the written proposals, but let the firms provide a brief presentation on these topics to see their communication style and culture. Reserve most of the interview time for interactive questions.

4.         Develop Two Standard Questions to Ask Each Audit Firm

By having two standard questions for each firm, you will be able to compare answers and benchmark responses to audit committee expectations.  

5.         Save Time for Wildcard Questions 

Often there is not enough time allotted to ask other questions that will surface from the interview. Hold these questions for the time assigned in the agenda to avoid interrupting other discussions. Make sure each audit committee member has a chance to ask a question. These questions will be spontaneous and should not be discussed among committee members ahead of time.

6.         Limit Discussions Between Interviews

Avoid discussions among audit committee members between interviews except to handle scheduling and logistical issues that may arise.

7.         Schedule a Separate Meeting to Make the Final Selection

By design, set a separate selection meeting for the audit committee. This meeting does not have to be held immediately after the last interview, but do not let too much time elapse. I prefer to have separation of a day or two to minimize bias in favor of the last interview, which is freshest in everyone’s minds.

Keep the meeting relatively short. Have each committee member share observations and comments and then call for a motion for recommendation for the audit firm to be selected.

Planning Tip – Fees are an important factor that will be a key criterion for selection and should be explored and fully discussed. Avoid giving too much preference to the firm with the lowest fees. During the interviews include a set question related to fees and fee structures. Ask specifically about “out-of-scope” fees and if the firm has typically experienced applying these fees on most of their audit engagements.

Ultimately, the “best” audit firm will be the one that is most aligned to meet your organization’s needs and culture. Thoughtful planning related to the live interview process will help ensure the audit committee has the information it needs to make this important selection.