• Home
  • About Us
    • Our Team
    • Our Mission
    • Testimonials
    • Service Areas
  • Services
    • Tax Services
    • Audit & Assurance
    • Accounting
    • Litigation Support
    • Valuation Advisory
    • Forensic Accounting
    • Business Consulting
  • Resources
    • Client Center
    • Online Tools
    • Important Sites
    • Timely Opportunities
  • MBA News
  • Careers
    • Senior Tax Accountant
    • Tax Manager
    • Bookkeeper / Accountant
  • Contact Us
  • Facebook
  • Google+
  • Linkedin
  • Savvy
  • Twitter
  • Home
  • About Us
    • Our Team
    • Our Mission
    • Testimonials
    • Service Areas
  • Services
    • Tax Services
    • Audit & Assurance
    • Accounting
    • Litigation Support
    • Valuation Advisory
    • Forensic Accounting
    • Business Consulting
  • Resources
    • Client Center
    • Online Tools
    • Important Sites
    • Timely Opportunities
  • MBA News
  • Careers
    • Senior Tax Accountant
    • Tax Manager
    • Bookkeeper / Accountant
  • Contact Us

Blog Post

Making the audit process more efficient

25 Feb 2016
Comment are off
MBA Site Administrator
Audit Process in St Petersburg Florida

Recently, the Center for Audit Quality (CAQ) and the Institute of Internal Auditors (IIA) conducted a series of roundtable discussions among internal auditors, external auditors and audit committee chairs. The purpose was to identify major risk management and financial statement audit challenges, and to examine ways these three groups can work together.

Tension between auditors

One topic of discussion was how internal and external auditors can work together to create a more productive and efficient external audit process. Participants felt that relationships between internal and external auditors had been damaged by Public Company Accounting Oversight Board (PCAOB) Staff Audit Practice Alert No. 11 — Considerations for Audits of Internal Control Over Financial Reporting.

Participants commented that, as a result of the Alert’s section on “Using the Work of Others,” external auditors are more likely to question the work of internal auditors, particularly in high-risk areas. In addition to straining relationships between internal and external auditors, company management has noted that this situation contributes to “audit fatigue.” In other words, the company’s employees are constantly bombarded by one set of auditors or another, often asking for the same documents.

Realizing that relationships are key

To improve relationships, make the audit process more efficient, and reduce audit fatigue, participants recommended better coordination between external and internal auditors, including:

  • Collaborating walkthroughs between the two groups so they don’t have to be done twice,
  • Having internal audits use the same templates as external audits, to avoid reformatting, and
  • Meeting early in the process to discuss allocating work between internal and external auditors. By agreeing on work to be performed by internal auditors for use in the external audit, and on work the external audit team will do on its own, the groups can improve working relationships and avoid duplication of efforts.

Roundtable participants also discussed how enterprise risk management (ERM) can be introduced at companies where it doesn’t exist, and nurtured at companies that have ERM structures and processes already in place. They discussed how audit committees, tasked with oversight of the internal and external audit functions, can foster communications with internal and external auditors and build effective working relationships that enhance the capabilities of all three groups.

The CAQ and IIA describe these discussions in Intersecting Roles: Fostering Effective Working Relationships Among External Audit, Internal Audit, and the Audit Committee. You can read this report at http://www.thecaq.org/reports-and-publications/intersecting-roles/intersecting-roles-fostering-effective-working-relationships-among-external-audit-internal-audit-and-the-audit-committee.

The bottom line

It’s critical that everyone be on the same page when it comes to making the audit process go smoothly. So contact your external auditor and discuss it with your audit committee chair. They can help you make the audit process more efficient and meet your risk management objectives.

© 2015

About the Author
McClanathan, Burg & Associates, LLC. is a full service accounting firm. Our team members provide services including: Tax, Audit, Assurance and Accounting, Estate and Trust, Forensic Accounting, Litigation Support and Business Valuation.

Social Share

  • google-share

Search

RECENT NEWS

  • IRS Extends the Tax Filing and Paying Deadline for Individuals
  • Do you know the tax impact of your collectibles?
  • Making 2017 retirement plan contributions in 2018
  • When an elderly parent might qualify as your dependent
  • AMT Calculations: It’s Showtime

Categories

  • MBA Events
  • MBA News
  • Opinion & Editorial
  • Resources & Tips

Archives

  • March 2021
  • February 2018
  • January 2018
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • November 2013

Social Media

Facebook
Linked In
SavvyCard
Twitter

“Best
Congratulations to this year's honored business!
Featured in the Tampa Bay Times.
Click here to view my profile >>

Categories

  • MBA Events
  • MBA News

Archives

Sign Up For Newsletter

First Name:
Last Name:
Email Address (required):
Company:
Phone Number:
© 2014 McClanathan, Burg & Associates, LLC | Website Design by ThinkTankConnect.com

Send to Mobile

Text or Email McClanathan, Burg & Associates online business card to your mobile device using the form below
From the card you will be able to:
  • Get turn by turn directions to the company's office
  • Access a visual company directory of employee cards
  • Call, email or text the company
  • Share/Refer the company to others
  • Save the card to your phone's home screen for future access