INSIGHT

Making the switch: How to choose a new audit provider for your commercial real estate business  

Mark Leverette • September 19, 2025

Services: Audit Industries: Real Estate

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Commercial real estate owners and operators face a critical decision when their current audit relationship no longer meets their needs. Whether you’re dealing with communication issues, rising fees, or simply outgrowing your current provider’s capabilities, switching audit firms requires careful planning and strategic thinking. 

The decision to change audit providers should not be taken lightly. Your auditor plays a crucial role in maintaining investor confidence, ensuring regulatory compliance, and providing valuable insights into your business operations. A smooth transition protects your reputation while positioning your organization for improved financial reporting and strategic guidance.  

This article will walk you through the key considerations for selecting a new audit provider and managing the transition process effectively.  

Recognizing when it’s time to find a new audit provider 

Several warning signs indicate you might need a new audit provider. Here are just a few of the most notable signs that you should pay attention to: 

• Poor communication ranks among the most common issues. When your current firm takes days to respond to emails, provides unclear explanations, or fails to keep you informed about progress, it creates unnecessary stress and uncertainty. 
• Cost concerns also drive many organizations to explore alternatives. If your audit fees have increased significantly without corresponding improvements in service quality, you have legitimate reasons to shop around. Additionally, if your business has grown or diversified beyond your current auditor’s comfort zone, you might benefit from a firm with deeper commercial real estate knowledge. 
• Technical competency issues present another red flag. Modern commercial real estate operations are characterized by intricate transactions, multi-entity structures, and constantly evolving accounting standards. Each real estate business must also adhere to specific financial statement formats and basis guidelines. If your auditor frequently requests clarification on routine transactions or struggles to grasp your business model, or if sophisticated investors begin to question the reliability of your reporting, it may signal a gap in the specialized expertise your organization demands. 

Key factors to evaluate in potential audit providers 

When evaluating new audit providers, industry knowledge should top your list of priorities. Commercial real estate accounting involves unique challenges, including financial statement format and disclosures, revenue recognition for leases, property valuations, and complex partnership structures. Look for firms that regularly serve clients in your sector and understand the nuances of your business model. 

• Team stability matters significantly in building effective working relationships. High turnover at audit firms can disrupt continuity and force you to repeatedly explain your operations to new team members. Ask potential providers about their staff retention rates and the likelihood that your assigned team will remain consistent year over year. 
• Technology capabilities have become increasingly important in modern auditing. Firms that leverage advanced data analytics, cloud-based collaboration tools, and automated testing procedures can often deliver more efficient and insightful audits. These technological advantages typically translate into better service and potentially lower costs. 
• Communication style and responsiveness directly impact your experience throughout the audit process. During your evaluation meetings, pay attention to how quickly potential providers respond to your questions and whether they explain complex concepts in terms you can understand. 
• Establishing clear expectations from the beginning helps build a productive long-term relationship with your new audit provider. Discuss your communication preferences, reporting deadlines, and specific areas where you need additional support or insights. Document those aspects that are allowable under AICPA and other regulatory standards in your engagement letter or other governance communications. 

Managing the transition process 

Once you’ve selected your new audit provider, proper transition planning becomes essential. Start by gathering all relevant documentation from your previous auditor, including prior year workpapers, management letters, and correspondence files. Your new firm will need this information to understand your historical accounting positions and identify potential areas of focus. 

• Timing your switch strategically can minimize disruption to your operations. Many organizations prefer to make changes at the beginning of their fiscal year, allowing the new auditor to establish baseline procedures and expectations from the start. However, mid-year changes are possible with proper planning and communication. 
• Communication with stakeholders requires careful attention during transitions. Inform your board of directors, investors, and lenders about the change in advance. Provide clear explanations for your decision and introduce them to key members of your new audit team. This proactive approach helps maintain confidence and prevents unnecessary concerns. 
• Budget for additional time and resources during your first audit cycle with the new provider. They’ll need extra time to understand your systems, processes, and accounting policies. While this initial investment may result in higher first-year fees, it typically pays dividends through improved efficiency in subsequent years. 
• Regular feedback sessions throughout the audit process allow you to address concerns before they become major issues. Schedule check-in meetings at key milestones to discuss progress, challenges, and areas for improvement. This ongoing dialogue helps both parties adjust their approach and maintain alignment. 

Working with BPM for your commercial real estate audit needs 

BPM brings deep commercial real estate knowledge and a client-focused approach to audit services. Our team understands the unique challenges facing property owners, developers, and real estate investment firms, and we tailor our audit procedures to address your specific risks and opportunities. 

We combine technical proficiency with responsive communication, ensuring you receive timely updates and clear explanations throughout the audit process. To schedule a consultation and learn more about our approach to building lasting client relationships, contact us.