I am getting ready to send out request for proposals for our external audit of the bank’s financial statements.

We currently have an internal audit department that completes the routine audit procedures for internal controls.

Because we have had the same external auditor forever, I am looking for advice on what I should have included in my request for proposal.

I am not sure what you should contain in your letter since I have never had to prepare one. But I do know what I would like to see in external auditors. While I was at ABA Grad School, I had the priviledge of meeting a gentleman that worked for a CPA firm that was the external auditor of a bank. He was attending the Grad School. This bank also had their internal auditor present at the Grad School. I spoke to both of them and was very envious of the work relationship they had. The external auditor worked very closely with the internal auditor. This provided the internal auditor with additional knowledge and both knew what the other expected, what was needed, etc. I thought how beneficial this relationship was for everyone, especially the bank.

Long story short, if I was the one looking for a replacement, I would want an external auditor that was willing to be involved.

Opinions are mine not my employer.

I would inquire with a few different companies that you are looking for bids on your external audit. They will come up with a detailed proposal for you. I don't feel you need to tell them much more. Most F/S audits are fairly similar as there are certain guidelines they must follow to form an opinion. They will probably need some information to give you an acurate quote, but let them do the asking.

When we started this process a few months ago, one of the first CPA firms we contacted provided us with a request for proposal document that they let us use. It was great, and asked for all the information we needed.

Since it wasn't ours, I can't share it, but you might call your local CPA and see if they have something similar.