The entry into force of EU Regulation 537/2014 (EU Regulation) on specific requirements for the audit of public interest entities and its validity as of June 17, 2016, has established special regulations in particular for the appointment of statutory auditors.
Public interest entities are also required to change statutory auditors at regular intervals after a maximum period of ten years in the future. The maximum periods can be extended by another ten years if a public bidding procedure which complies with the specific procurement rules of the EU Regulation is carried out. In principle, the procurement rules apply to every invitation to bid unless an existing mandate is extended.
The overall responsibility for the bidding procedure lies with the audit committee or supervisory board. The latter shall make and be responsible for all material decisions and ensure compliance with the procedure.
The executive board and the technical departments support the audit committee in the handling of its responsibilities by, for example, preparing the bidding documents and selection criteria, evaluating the offers received and reporting on the selection procedure.
Selection of a Statutory Auditor
The selection of a statutory auditor is a classic decision-making problem. Once objectives (requirements) have been defined, measurable or evaluable attributes (selection criteria) shall be defined to measure the achievement of each objective. The principle of transparency and non-discrimination applies, as is otherwise the case throughout the procedure.
This causes challenges in terms of capacity and content for the audit committee of the supervisory board, the supervisory board itself, the executive board and technical departments.
WTS Advisory Will Support You in the Selection
WTS Advisory will support you with our experts in the planning and implementation as well as in the review of the statutory auditor invitation to bid. Our consultants are former auditors from major auditing firms and have extensive insights into the auditing firms, their products, audit processes and audit tools as well as into bid strategies and bid processes. In addition, our experts have already assisted a large number of companies with invitations to bid.
You Will Benefit from our Commitment at all Levels:
- We are a sparring partner and source of ideas for the audit committee. We accompany the bidding process as consultants and thus contribute an additional element of security, objectivity and transparency. We also reflect on your bidding process
- We reduce the workload for the executive board and the technical departments when it comes to preparing and operationally executing the invitation to bid. Among other things, we support you in the preparation of bidding documents and the analysis of the bids.
- Our experience and the use of proven procedures will shorten your preparation time and ensure an efficient process. For example, it is no longer necessary to identify completely new selection criteria, invent valuation models or go through the trouble of asking your peers for benchmark information.