Post by tomcasper745 on Apr 29, 2018 22:09:54 GMT
Cost Effectiveness
By selecting audit firms through competitive bidding, companies can control the costs associated with the audit process. Audit firms usually quote an initial amount, which might increase if the auditors later discover financial issues that need greater investigation. However, since competing for a tender requires auditing firms to state the scope of work and bid a specific amount in relation to the whole contract, with an incentive to go low in order to win the work, this mode of selection is particularly beneficial to the company.
Greater Talent Pool
Using the competitive bidding process to select an auditor generates a greater pool of talent and expertise for the company to choose from. In response to Requests for Proposals, auditing firms intending to place their bids detail their knowledge and expertise, particularly in the industry within which the company operates, as a way of distinguishing themselves and increasing their chances of winning the bid