Auditing 101: Info you should know

Been in the business for a couple of years now not an expert but since this week is the start of my new audit thought I’d share some must have’s, tips and explanations with fellow auditors, those who will be audited and those who are considering being auditors.

Definitions

External auditors audit a company’s financial statements they may also audit a company’s risk based processes. Their audit steps will be based on financial standards such as IFRS because they are basically financial auditors. Internal auditors are risk based auditors who perform process driven audits. For example these types of auditors look at how your sales department performs certain tasks or how your business procures their goods and services. They look at the flow of processes, the financial side and the people performing the different tasks.

Myths

1.All auditors are the same
2.Auditors don’t have a personality
3.When auditors come, someone loses their job

Only got to 3 myths thus far, not all auditors are the same and all auditors do have personalities trust me you will not get anywhere if you don’t know how to socialise. People don’t get fired because of an auditors visit, people can get fired as a result of doing something bad and an auditor identifies the error whilst assessing the business. We are there to help, people are inherently afraid of change even if it is just a temporary change in their environment.

Tips

1.Be honest and open
2.Just be yourself and try not to act like you have something to hide
3.It’s okay to speak to auditors they are people too and they won’t bite
4.Build relationships and see how far that gets you it’s bound to work to the advantage of both parties
5.Don’t let the grey and black suits intimidate you
6.Give them what they want and they will be out of your hair faster than what you expect

To my fellow auditors don’t be so hard smile and laugh more it helps to ease the tension. Don’t forget our clients are first people and second employees of the company so we should respect them first and treat them as people first and not just sources of information so that we can make our deadlines. Yeah, some deadlines can be tough but don’t forget to have fun and remember why you love what you do.

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