Whether your audit committee has mandated a re-tender, your board wants to test the market, or you’re appointing an external auditor for the first time, the audit tender process works best when it’s structured, honest and efficient. Many private company boards re-tender their audit every five to seven years as a governance discipline. This page explains how the tender process works and how to invite us to participate.
How to run an audit tender
The audit tender process doesn’t need to be complicated. A well-run tender typically follows five steps:
- Define what you need. Scope the work: statutory audit only, or do you also need group consolidation, charity audit, pension scheme audit, or other assurance services? Agree the timeline with your board or audit committee.
- Prepare a brief tender document. Include your company overview, financial year end, entity structure, current audit fee, recent financial statements, and any specific requirements. Two or three pages is enough.
- Invite three or four audit firms. Include a mix of firm sizes. Send the same document to everyone and set a clear deadline for proposals.
- Evaluate proposals and meet the teams. Read the proposals, then meet the audit partner and manager who will actually do the work. Judge them on sector experience, team quality, approach and value – not just fee.
- Make the appointment. The board or audit committee makes the recommendation. Shareholders pass the resolution. The new auditor handles professional clearance with the outgoing firm.
The whole audit tendering process typically takes six to eight weeks from issuing the tender to making the appointment. FRC guidance on best practice recommends starting the tender process at least six months before your financial year end. Your audit committee should oversee the process and make the recommendation to the board, with clear reporting on how each firm was evaluated.
What our audit proposals include
When you invite us to tender, you won’t receive a template with your name inserted at the top. We invest time in understanding your business before we put together a proposal. Here’s what you’ll get:
- A named audit partner and team. You’ll know exactly who will lead your audit, who will manage the fieldwork, and how much partner time is allocated. We’ll include CVs and relevant experience for each team member.
- Our audit approach. How we’ll plan the audit, what areas we’ll focus on, how we’ll test controls and balances, and what technology we’ll use. This is specific to your business, not a generic methodology document.
- Sector experience. Relevant client references (with permission) and examples of how our sector knowledge benefits the audit process and the quality of our recommendations.
- A fixed fee. Not an estimate that rises after year one. A fixed fee that covers the statutory audit, the audit opinion, the management letter, and all meetings and correspondence. We’ll also confirm the year-two fee so there are no surprises.
- A transition plan. How we’ll manage the handover from your outgoing auditor, what we need from you, and the timeline from appointment to completion.
We aim to deliver proposals within five working days of receiving your tender document. For larger or more complex requirements, we’ll agree a realistic timeline upfront.
Sectors we cover
We audit across a wide range of sectors. Our strongest experience is in:
- Charities and not-for-profit organisations
- Solicitors’ practices (SRA-regulated)
- Pension schemes
- Financial services firms
- UK subsidiaries of overseas parent companies
- Academy trusts and education providers
- Owner-managed businesses and private company groups
- Grant-funded organisations (including Innovate UK)
If your sector isn’t listed, that doesn’t mean we can’t help. Call us and we’ll tell you honestly whether we have the right experience for your audit.
For audit committees and boards
If you’re running a tender as part of a governance review or audit committee mandate, we understand the additional requirements:
- Independence confirmation. We’ll confirm our independence from your company and any connected parties before submitting a proposal.
- FRC Ethical Standard compliance. We follow the FRC’s Ethical Standard for auditors, including restrictions on non-audit services that could compromise independence.
- Audit quality indicators. We can provide information on our audit quality monitoring, practice reporting, staff retention rates, partner-to-client ratios, and audit firm governance. The audit committee should consider these indicators as part of the tender evaluation.
- Formal presentations. We’re happy to present to your audit committee, board, or finance team as part of the evaluation process.
Why consider a mid-tier audit firm?
If your current auditor is a Big 4 or top-10 firm, you might be paying a premium for a brand name without getting the partner involvement and sector depth that a smaller firm can offer. Our audit partners lead every engagement personally – not as a figurehead, but as the person who reviews the work, signs the opinion, and writes the management letter.
We quote fixed fees that are often significantly less than Big 4 equivalents for comparable work. And we don’t rotate your team annually – the same people come back year after year, so they know your business and don’t waste your time asking questions they’ve already been answered.
Submit your tender or request a proposal
Ready to include us in your audit tender? You can:
- Email your tender document to audit@jackross.com and we’ll respond within five working days
- Call Umar Memon directly on 0161 832 4451 to discuss your requirements before the formal process
- Fill in the form below and we’ll arrange a conversation with the audit partner best suited to your sector
No obligation. If we’re not the right fit for your external audit requirement, we’ll say so upfront rather than waste your time with a proposal that doesn’t serve your interests. Our practice is built on long-term audit relationships, not tender-winning and fee-hiking.
