If you’re considering a change of financial auditor, the chances are you’re not fully satisfied with the service you’re receiving. Perhaps your business has outgrown your current auditor’s capabilities, or you’re looking for more proactive advice, more sector knowledge, or simply a better fit for you and your company.
The good news is that you can change your auditor, and it’s more common than you might think. In this guide, we explain what a financial auditor does, why companies consider making a switch, how the process works, and how Butt Miller can help ensure your transition is smooth, compliant, and ultimately valuable for your business.
For advice on company audits and to book a consultation, contact us today.
What is a financial auditor?
A financial auditor is an independent professional who reviews a company’s financial statements. They assess whether the statements accurately represent the company’s financial position and performance, and whether they comply with UK accounting standards and legal requirements.
Annual audits are a legal requirement for most medium to large-sized companies. While audits are not mandatory for smaller businesses, some opt for a voluntary audit, as it proves that they take their finances seriously, which can enhance their credibility with banks, investors, and suppliers.
Auditors look at financial records, accounting policies, and internal controls, such as:
- Profit and loss statements
- Balance sheets
- Bank statements and reconciliations
- Invoices and receipts
- Payroll records
- Tax returns and filings
- Fixed asset registers
- Loan and financing agreements
- Shareholder and director records
- Stock and inventory records
Financial auditors must be qualified and registered with a recognised professional body, such as the ICAEW, ACCA, or ICAS.
An audit provides independent assurance that your financial statements are reliable, and provides recommendations for improvement, giving peace of mind to directors, shareholders, and stakeholders.
Is it legal to change your auditor?
It is completely legal to change your auditor. However, procedures and notification requirements depend on the size and type of your company. If any such notifications are required, your new auditor will guide you through the process.
Do I need a reason to change auditors?
You don’t need to give your current auditor a reason for leaving. For private limited companies, the decision on who audits the company is typically proposed by the directors and approved by the shareholders at a general meeting.
Why companies consider changing auditors
Business growth
As your business grows, its finances naturally become more complex, with bigger transactions, more staff and new revenue streams. You may outgrow your current auditor and seek another with broader services and greater experience in advising growing companies.
Service quality
As in all industries, service is often a key driver for changing auditors. Many businesses seek a more experienced and responsive team; one that offers proactive advice on things like improving internal processes, strengthening financial controls, and tax management.
Seeking fresh perspective
Bringing in a new auditor can offer fresh insights, particularly after a long-standing relationship. A new auditor is more likely to challenge ingrained processes and make objective recommendations.
Sector-specific knowledge
If you operate in a specialist sector, it’s crucial to have an auditor who understands the nuances of your industry and the particular financial challenges you face.
Read Butt Miller’s case study on AVI-SPL Limited to see how we helped a client benefit from sector-specific expertise.
Regulatory requirements
Some companies must change auditors periodically to maintain independence and compliance. For example, public interest entities, such as listed companies and large financial institutions, are required by UK law to rotate their audit firm at least every 10 years to maintain independence.
The process of changing your auditor
Changing your auditor typically involves the following stages:
- First, assess your current needs and define what you’re looking for in a new auditor: do you need deeper sector expertise? a more proactive approach? better communication? a broader range of services (such as tax planning or business advisory)? Or simply a team that aligns better with your company’s values?
- Research and shortlist audit firms that align with your industry, size, and ambitions. Be sure to look at reviews and case studies for assurance of quality.
- Notify your existing auditor of your decision to make a change. There is no fixed notice period, but it’s essential to plan the timing carefully so the new auditor has time to review and understand your records before reporting deadlines.
- Appoint your new auditor. The incoming and outgoing firms will work together to ensure a smooth handover and transfer of knowledge.
It’s important to plan in advance to avoid delays, ensure compliance, and allow your new auditor to hit the ground running.
Think about making the switch? Contact Butt Miller Chartered Accountants
At Butt Miller, we understand that changing auditors can feel like a big step, but with the right support, it’s an opportunity to add real value.
Our experienced team will manage the entire process, liaise with your previous auditor and ensure minimal disruption to your operations. We focus on delivering tailored audit support, sector-specific expertise, and strategic insight that helps you strengthen your financial position.
With broad experience across many industries, we’re skilled at matching the right people to the right businesses, as we did successfully for Gillingham FC.
If you’re considering a change, contact Butt Miller to book a consultation.
Frequently asked questions about changing auditors
Will changing auditors affect our financial year-end or reports?
No, changing your auditor won’t affect your financial year-end. However, it’s essential to plan the timing carefully so the new auditor has sufficient time to review and understand your records before reporting deadlines.
How long does the process take to get a new auditor?
The process of changing financial auditors can take anywhere from a few weeks to a few months. It largely depends on the complexity of your business and how quickly you can provide the necessary documentation.
Early planning will help ensure a smooth transition. At Butt Miller, we recommend appointing a new auditor before your year-end if you hold stock items or have any other transactions that require auditing on or around the year-end date. If you are unsure, please get in touch and we will advise on a suitable timeline.
