Industry expertise matters more than ever when selecting an external auditor. Use this checklist to focus on the right criteria.
When audit committees choose an external auditor, “industry experience” often is listed as one of the top evaluation criteria – and for good reason.
As new industries such as fintech and cannabis proliferate, each with its own nuances and regulations, industry experience becomes critical. Just being a generalist auditor often is no longer enough to adequately serve the expanding range and specificity of clients. External auditors with inadequate industry experience might miss critical risk areas, which can lead to audit quality issues and even regulatory problems, stakeholder lawsuits, or other litigation.
How can audit committees find an external auditor with expertise in their industry? This checklist details industry-specific evaluation criteria and questions to determine the right fit.