What happens if I use the same firm for accounting and audit?

Question

Accepted Answer

Quick answer. You shouldn't — and for a company, you generally can't. The whole point of an audit is independence: someone objective checks the books. If the same firm both prepares and audits your accounts, they're effectively checking their own work, which defeats the purpose and breaks the rules. Why it's a problem. An audit is only meaningful if the auditor is independent. If the firm that did your accounting also audits it, there's a clear conflict of interest — they can't objectively judge work they created, and they're unlikely to flag their own mistakes. That's why the law restricts a company's statutory auditor from also providing its bookkeeping and accounting services. What to do instead. Keep the two separate: one accountant or firm maintains your books, and a different, independent auditor examines them. This isn't just about following the rule — it's about the audit actually being worth something. Our honest take. Independence is the entire value of an audit. Blur it, and the “assurance” your audit provides is worthless — to you and to investors, who will notice. Keep the accountant and the auditor separate, always.