Are you independent of our company under Section 141 of the Companies Act?

The auditor must confirm they have no financial interest in the company, no business relationship beyond the audit, and are not a relative of any director. They must not be providing bookkeeping, accounting, or management services to the company. Confirm this explicitly. Independence violations can invalidate an audit.

Do you have experience auditing companies in our industry and at our scale?

An auditor experienced with SaaS companies understands deferred revenue and subscription accounting. One experienced with manufacturing understands inventory valuation and job costing. Ask for examples of clients in your sector.

What is your timeline for completing the audit from the date you receive our records?

For a small company, 4–8 weeks from complete record receipt is reasonable. Get a specific commitment, especially if you have ROC filing deadlines or investor reporting requirements tied to the audit completion.

Who will actually conduct the audit. You personally, or your article assistants?

In many CA practices, the senior partner signs off but article assistants do the actual fieldwork. This is normal. But you should know the experience level of the people reviewing your accounts, and the partner should be meaningfully involved in the substantive review.

What will you need from us, and in what format?

A thorough auditor provides a detailed request list upfront: trial balance, bank statements, all invoices above a threshold, fixed asset register, board resolutions, contracts, and TDS reconciliation. A vague answer to this question suggests an unstructured audit process.

How do you handle GSTR-2B reconciliation and GST compliance review?

GST compliance is now a significant part of any statutory audit. The auditor should review GSTR-2B reconciliation, ITC claims, and HSN/SAC code accuracy as part of the audit. If they do not mention this, ask explicitly what their GST review process covers.

What are your fees, and what is included vs. billed separately?

Confirm whether the statutory audit fee includes tax audit (44AB) if applicable, GSTR-9C certification if required, and ROC filing assistance. These are frequently priced separately and the total can be significantly higher than the quoted audit fee alone.

How do you communicate audit queries to management. And what is the expected response time?

A professional audit process involves formal written queries and documented management responses. Ask whether queries are communicated in writing (email or formal letter) and what turnaround time they expect from your side. This structure protects both parties.

Have you or your firm had any disciplinary proceedings or qualified audit reports in the last three years?

You can search for CA disciplinary matters at icai.org. While disciplinary history is not automatically disqualifying, it is relevant context. A qualified audit report (with an 'except for' or adverse opinion) on a previous client is worth understanding.

If you identify a significant issue during the audit, how will you communicate it to us?

A good auditor communicates significant issues promptly. Not as a surprise in the final report. Ask specifically how they handle situations where they identify a material accounting error, suspected fraud, or a compliance breach. Their answer tells you a lot about how they run their practice.

Accounting

10 Questions to Ask Before Hiring an Auditor

The 10 questions to ask any CA before appointing them as your statutory auditor. Covering independence, experience, timeline, and what the engagement actually covers.

Ajsal Abbas

22 July 2025

5 min read

Quick summary

The 10 questions to ask any CA before appointing them as your statutory auditor. Covering independence, experience, timeline, and what the engagement actually covers.

What to clarify before appointing an auditor

Appointing an auditor is not a commodity decision. The wrong choice leads to late filings, missed compliance, poor-quality audit reports that raise red flags with banks and investors, or independence violations that invalidate the audit. These questions help you make the right appointment.

The 10 questions

Looking for a verified professional?

Get quotes from professionals near you. OTP-verified contacts only. No cold calls, no spam.

Get quotes from auditors near you

Get started free

Get quotes from auditors near you

Free for customers. Up to 3 OTP-verified professionals respond within 24 hours. No spam, no obligation.

Post your request free How it works

Keep reading

View all

Accounting10 min read

Statutory Auditing in India: Requirements, Process & Costs for SMEs

A practical guide for Indian SME owners on statutory audit requirements under the Companies Act 2013, what auditors actually do, timelines, costs, and how to prepare for an audit.

21 April 2026Read

Accounting7 min read

Best Auditing Services in Bangalore (2026)

How to find and evaluate auditing firms and CAs for statutory audit in Bangalore. What audits cost, what to look for in an auditor, and how to prepare.

21 April 2026Read

Accounting10 min read

Accounting Standards for Indian SMEs: A Compliance Guide (2026)

A practical guide for Indian SME owners and founders on which accounting standards apply to your business, what the compliance obligations are, and when you need a CA.

21 April 2026Read

What do you need done?

Marketing & Technology

Lessons & Training

Legal & Business

Home Services

Health & Wellbeing

Events & Creative

Construction & Trades

For Customers

For Professionals

10 Questions to Ask Before Hiring an Auditor

What to clarify before appointing an auditor

The 10 questions

Statutory Auditing in India: Requirements, Process & Costs for SMEs

Best Auditing Services in Bangalore (2026)

Accounting Standards for Indian SMEs: A Compliance Guide (2026)