Date
Attn: Name
Firm
Address
Dear Name,
COMPANY (“XXX” or “the Company”) invites AUDITOR to submit a proposal for the preparation of its annual audited financial statements and related filings for a three-year period beginning with the YEAR calendar year ending December 31, as well as the annual audit of its 401(k) plan for fiscal year ending MONTH DAY, YEAR. This three-year RFP also includes the preparation of all federal and state income tax returns. We currently file taxes in XXX states.
The firm will report to the Board of Directors of COMPANY. CFO and Controller will be the main staff contacts.
Company Structure:
xxx
Company Background Information:
xxx
COMPANY requires the following services:
Annual consolidated financial statement audit and opinion delivered by April 30 of each year
Required communications to the Board of Directors per AU 260 265
Federal Income Tax Return for all entities
State Income Tax Returns for all entities
Additional state or city returns as required
Maintenance of Tax Fixed Asset Records
Annual 401(k) plan audit delivered by late summer of each year and in time for required DOL
filings
Process for Selection:
Firms will be able to meet virtually with COMPANY staff for one hour for questions during the month of July. Scheduling requests should be made with XXX
Firms will be able to submit questions in writing by noon, July 24. Answers will be provided in writing by Friday, July 31.
Submissions will be due by 12 noon on August 7, 2020, and should be made electronically in PDF format to:
XXX
XXX
Receipt will be confirmed.
RFPs will be reviewed by XXX.
Firms will be selected to be interviewed virtually by XXX. Timing: late August.
A final recommendation from the Board of Directors will be forwarded for their approval. Notification of award will be late August. In responding to this request, we request the following information:
Detail your firm’s experience in providing auditing and tax services to companies like COMPANY, as well as firms comparable in revenues.
Detail your firm’s experience working with agencies or with ASC 606 for project-based companies
Discuss your firm’s recent peer review comments and relevant findings, if any
Provide information on your relationships with related industry associations or groups
Discuss the firm’s independence with respect to our business
Discuss commitments you will make to staff continuity, including your staff turnover experience in the last three years
Identify the partner, manager, and in-charge accountant who will be assigned to our job if you are successful in your bid and provide resumes
Describe how your firm will approach the audit of the organization, including the use of any association or affiliate member firm personnel and the areas that will receive primary emphasis
Discuss your firm’s ability to conduct fieldwork remotely as dictated by restrictions due to the COVID-19 pandemic
Discuss the firm’s use of technology and/or templates in the audit and include in your discussion the communication process used by the firm to discuss audit plan, test results and any issues with the management and the Board of Directors
Provide a detailed fee proposal for each of the three years of the proposal period for audit and services, with whatever guarantees can be given regarding increases in future years. Separately, outline the price for the preparation of the federal and state income tax filings and for the 401k audit
Provide any value-added services that are included within the fee quote set forth in your response to item 9
A proposed timeline for fieldwork and final reporting
Describe your firm’s current practices to provide continuing education to COMPANY staff
Provide the names and contact information for other, similarly sized clients of the partner and manager that will be assigned to our organization for reference purposes
Provide at least two (2) examples of audits you have completed for similarly sized and structured organizations
Describe how and why your firm is different from other firms being considered, and why our selection of your firm as our independent accountants is the best decision we could make
Describe how your firm will work with the outgoing firm on a smooth transition
Enclosures:
2019 and 2018 audited financial statements
2019 and 2018 Tax Returns
2018 and 2017 401(k) audited financial statements
Organization chart
List of Board of Directors and Senior Leadership Team
Sincerely,
Name
Chief Financial Officer
E-mail