Udbud af revisionsydelsen

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Udbud af revisionsydelsen

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Title: Udbud af revisionsydelsen
En analyse af udbudsprocessens betydning for revisionsvirksomheder
Author: Hald, Andreas Christensen
Abstract: Audit tenders are an interesting area for audit firms. The audit firms want to participate in the audit tenders and they want to be a part of the process because it provides the firm with an opportunity of winning a new client, which as a result will strengthen the firm on the market. This master thesis revolves around the process of audit tenders and how audit firms handle these tenders. There is also a focus on how audit tenders affect the market in general: a market that is subjected to new EU legislation, requiring mandatory firm rotation. The analysis is based on Danish and international legislation from EU and on the Best Practices pamphlets on ‘Auditor selection’ and ‘Audit Tenders’, created by the European Federation of European Accountants (FEE) and the English Financial Reporting Council (FRC). Master theses, on how to choose auditors and how to differentiate between audit firms, has been included as well. In addition to the prior sources, a number of interviews from different strands of the audit tendering process have been executed as a way to provide a broad perspective of the field. This master thesis analyzes the current extent of audit tenders and predicts an increase in the number of audit tenders in the next following years. This gives rise to an examination of the criteria and expectations raised by the companies, when selecting an audit firm. According to the analysis, qualifications of the auditors are fundamental to a successful process, however, the decision at an audit tender is likely to be determined by the chemistry between auditor and company. As part of the analysis, I investigate the parameters the companies find the most significant when making their final decision, which an auditor needs be aware of before making a proposal. It can be difficult for the audit firm to locate the person, or groups of persons, who ultimately makes the final decision of choosing an auditor, and that is one of the main points approached in this thesis. The results show that the audit committees are a part of the decision-making and that is also something the auditors must take into account before making a proposal. This thesis provides an analysis of the different ways the audit firms prepare for the future increase of audit tenders. It is essential to implement internal processes for handling incoming audit tenders. It is equally important to educate auditors to deal with audit tenders in the best possible way, making them capable of presenting their proposal as the best decision. The thesis will furthermore provide a discussion of the possible effects the increasing number of audit tenders may have on the market in the future. The future of the audit firms seems unsteady because of the many companies that will change their provider and it, furthermore, seems as though the process will be subjected to automatized procedures that will still include transaction costs. According to the analysis, the audit firms will have to pay special attention to specific areas of this process of dealing with audit tenders as the market will change, and they will have to make sure that there is a constant improvement of the efficiency of the auditors.
URI: http://hdl.handle.net/10417/5375
Date: 2015-07-28
Pages: 103 s.
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