I am getting ready for my year-end "encounters" with external auditors which will begin shortly after year end. Being in
Any advice on how I can "gently push back" to make sure that those giving me the questions understand what they are asking so I do not need to "educate them" before I even get around to the "back and forth"? I am not known for my "bedside" manner with auditors and I get frustarted that they are more eager to "check off" items from their list than the amount of time they waste in getting those boxes checked.
Year End Audits: Collaborating with External Auditors
Answers
Scott - your situation is one we all can commiserate with … however the condition you have identified can be used to create an opportunity manage the external auditors and attain our goals (assuring users of our financials that statements are fairly stated and our controls are working properly)
as leaders of the business.
To deal with, what frankly, is a training issue (on the
Much of our difficulty as auditees comes from our expectations of the auditors. We want the auditors to know our business and execute the audit from that place of understanding. However, auditors are generally expert only at auditing, we are the experts in our respective businesses. As business experts we want and need to leverage the auditors’ abilities to attain our goals.
By reviewing and as needed, commenting on the auditors’ risk assessments you create the opportunity to direct the auditors efforts before they show up in your office asking questions during the testing phase that should have been answered in planning.
Does anyone have a "List of Yearend Planning Ideas" for the the External Audit?
Scott – that has been and I expect will continue to be an area of annoyance each year as part of my role as well, and I also am not known for being the sweetest personality in my organization. Your expectations will most likely go unmet of having an auditor understand your business and only ask relevant questions. The
We deal with our auditors electronically (out of state) so we don’t have the formal sit down meeting that kicks off the audit. When we did we always gave them a physical tour of the location or had a video of the production or customer life cycle. Nothing an hour long, just a ten minute intro to what we do.
I’ve long stopped being surprised that the auditors don’t even look on the website prior to the visit to familiar themselves at all. We are truly just a list of boxes for them to check.
The "price" of audit managers and partners is green juniors...who you will have to deal with. This is not likely to change, so I suggest you develop, in advance, an "