7 ways to help your auditor perform a more efficient audit
The audit function – both internal and external – plays an essential role in every well-functioning organization and its importance should not be underestimated nor should it be deprioritized. Without a well-functioning audit system, organizations are not able to create reliable financial reports nor can they prevent debilitating misstatements in records and reports. Efforts should therefore be made to help the audit function perform as efficient as possible.
- Prioritise planning
Planning is key to successful audit and if you engage in the planning phase with your auditor, you can help devote the appropriate attention to important areas of the audit.
- Collaborate on risks and mitigating controls
Liaise with your auditor about risks and determine the adequate actions and controls to deal with these risks. A successful collaboration can lead to better controls, because the combined knowledge pool can ensure more preventive and effective controls.
- Keep a systematic approach
Make systematic follow-ups to ensure that controls are performed and are well-functioning, and that documentation is adequate.
- Implement best practices
Define controls and processes clearly and establish a best practice together with your auditor. You can either develop a best practice for your auditor – or you can go over them together.
- Communication is key
Match your expectations. What does your auditor expect from you? Can you fulfill these expectations? In this regard, good communication is the key to success. Without effective communication, a message can turn into error, misunderstanding and frustration. It is therefore essential that both you and your auditor understand the same information in the same way.
- Talk about the PBC list
The PBC (prepared/provided by clients) list is a list of items that your auditor will need from you. A dialogue about the PBC list early on can lead to a smoother flow with understanding and action.
- Implement an internal control baseline
An internal control baseline is a way for companies to measure improvements in the internal controls and thereby a tool for monitoring the auditing efficiency. It plays a crucial part of an organization’s ongoing development.
Many organisations have embarked on journeys where these advice can become a game-changer and a competitive advantage. With shared service centres and centralizing of key processes such as tax, treasury, IT, legal, etc., the need for efficient auditing is bigger than ever.
Many companies overcome these auditing obstacles by using Impero. Impero offers a light-weight and cloud-based GRC solution that helps companies in various areas stay in control.