An audit firm must be registered in the Registry of Audit Firms or an individual auditor in the Registry of Auditors from the Council for Public Supervision of Auditing under the Ministry of Finance of the Republic of Moldova.
Terminology
When you seek an auditor, you are typically looking for an audit firm that will provide independent assurance to stakeholders, investors, or regulators that your financial statements are accurate and meet the required standards.
The professionals they employ to investigate these records are the auditors-physical persons.
Related Concepts
If you are currently evaluating your financial and compliance needs, it helps to distinguish these firms from other financial entities:
- Audit Firms vs. Accounting Firms: Audit firms focus exclusively on independent assurance and verification. In contrast, Accounting Firms offer a broader range of operational support, such as daily bookkeeping, tax preparation, and payroll.
- Independent Audit vs. Internal Audit: External audit firms provide objective, third-party reviews. Some auditors work internally as full-time employees of a company to test internal processes.
Evaluate firms based on qualifications, industry expertise, credentials, references, cultural fit, transparency and price-quality ratio.
To find a firm that safeguards your business and provides valuable strategic insights, follow this step-by-step evaluation process:
1. Identify Your Specific Needs
- Determine the purpose of the audit: Statutory financial audit, internal audit, or compliance audit for specific requirements or industry regulations?
- Specify the type of audit: Financial Audit, Tax Audit, Management Audit, IT Park Resident Audit, International Grant Project Audit, or other.
- Financial reporting standards: National Accounting Standards (NAS) of the Republic of Moldova, or also International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP). Specific requirements for compliance with local or international regulations.
- Financial statement presentation format: Financial Statements (RSF1) Simplified, Abridged, or Full, in accordance with Law on Accounting and Financial Reporting No. 287/2017 and NAS "Presentation of Financial Statements".
- Briefly describe the most important features of your enterprise, including what directly affects accounting and/or what should be taken into account in an audit.
- Specify the main types of activity of the company according to the Classification of Types of Economic Activity of Moldova (CAEM-2). For some types of activity, for example IT, you may also need clarification from the Statistical Classification of Products (Goods and Services) of the Republic of Moldova (CSPM 2.1)
- Create a specification Request for Proposal (RFP) for the audit firm and send it to your a shortlist of candidates.
2. Seek Industry-Specific Expertise
- Industry Expertise: Ensure the firm has a proven track record within your exact sector, as this translates to higher efficiency and fewer disruptions. An auditor who strictly handles retail will not intuitively know the complexities of an IT company, SaaS startup or a charitable nonprofit.
- Assess experience: Ask potential firms exactly how many clients they have in your specific niche or sector. This guarantees they understand your industry's unique regulatory frameworks and compliance standards.
3. Check accreditations and licenses
- Accreditation: Make sure that the audit firm is registered in the Public Registry of Audit Firms or that the individual auditor is registered in the Public Registry of Auditors maintained by the Council for Public Supervision of Auditing under the Ministry of Finance of the Republic of Moldova.
- If the audit firm or individual auditor is a member of the Association of Professional Accountants and Auditors of the Republic of Moldova, this will be an advantage.
- Check peer review results: Legitimate audit firms regularly undergo peer review to ensure that their audit standards, controls, and practices are verified by independent third parties. Request the results of the most recent peer review.
- Quality control: Request their most recent independent peer review report to confirm the quality of their audit systems.
4. Evaluate the Team and Communication
- Meet the Team: Request to meet the actual engagement partners and managers who will handle your account, not just the sales team.
- Assess communication style: A good auditor acts as a collaborative partner. You need a team that communicates clearly, explains the results, and guides you proactively through regulatory changes.
- Accessibility: Find out if you will have year-round access to the team for consultations, or if they only communicate during the audit phase.
5. Check Reputation and References
- Client Testimonials: Request references from current or past clients of similar size and structure to your organization.
- Peer Feedback: Check with trusted professional service providers (like your bank or attorney) for recommendations on local firms.
6. Consider the cost and value of services
- Get multiple bids: Request commercial offers (proposals, or RFPs) from at least 3 potential firms to ensure their rates are competitive.
- Consider the cost of the services, not just cost: Fees are important, but the cheapest bid often results in a lower-tier audit, while the highest fee does not guarantee quality. Look for transparent pricing that reflects the scope of work.
- Multi-year engagements: Ask if the firm offers multi-year contracts, which can help you lock in budget certainty for a few years and save on initial setup costs.
Where to Find Candidates
- Ask your peers: Recommendations from trusted colleagues, other business owners in your industry, or even your current attorneys and bankers are your best starting points.
- Official list: select from the list of companies Public Register of Audit Firms
- Select from the list on the page Top audit companies in Moldova on the e-Cont.md website
- Refer to the website Association of Professional Accountants and Auditors of the Republic of Moldova.
Official EU directories: Search through Accountancy Europe for best practices on selection criteria.