If the audit firm and the client in terms

If the audit company has long association with the existing client,
the auditor would know all the ins and outs of their client. The auditor would
know exactly what is needed and this will help them in knowing what to request
from the clients and where they can get it from. This will be beneficial to
both the audit firm and the client in terms of time management; without needing
time to get to know operations and by completing the audit service fairly
quickly and easily. Long associated auditors will be better at their job as
they have done it repeatedly throughout the years. Long association with an
audit firm could be very cost effective as the audit firm is trusted with their
work and do not have to be provided with any training expenses or beginning
bookkeeping. The risk of mistakes at the end of the audit would be decreased
and this would save the company from paying extra costs. Long association’s
relationship would lead to positive relationship where the audit firm, as well
as the client, would push for successful and productive audits. On the other
hand, usually when audit firms are involved with client companies for so long,
the objectivity of the auditor will reduce and they may not work hard enough to
find fraud that may be concealed, as there would be relationship based on
trust. The auditors would be used to examine the accounts receivable in a
specific way that they would be convinced it’s the better way, disregarding all
other methods as they are used to one. Audit firms may not take the old clients
seriously as they have been with them for so long; the audit firms will take
new clients more valuable as they would have a need to prove their worth. It
will be in the client company’s best interest to change the audit company they
are involved with in terms of price, as it will not be worth the amount they
would have to pay if they are caught with fraud or forgery.

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