We all know it’s coming, it’s right around the corner. Your business is booming and time is scarce. You need an audit and you prepare yourself for the overtime that looms ahead. But it doesn’t have to be this way! There are steps you can take to minimise the impact an audit will have on your working day and if you follow these simple steps you will find that your next audit will be as hassle-free as an audit can be!
1: Prepare everything on the request list before the auditor arrives
Your auditor should provide you with a request list of items to prepare prior to the audit. This list is fairly detailed and will usually include a transaction list from which the auditor can select the majority of their samples for testing. Generally, if all of the information on the list is provided to your auditor prior to the audit, your audit will be completed faster and with fewer questions. Think a stitch in time saves nine!
2: Advise your auditor of any significant changes in your business before they ask
Auditors perform analytical procedures as part of their testing of the accounts. For example, if during the year payroll expenses doubled from last year, but the headcount stayed the same, your auditor is going to ask why. Whenever possible, proactively address such incidences ahead of the audit, rather than needing to investigate the cause during the audit. Likewise, if any major transactions took place during the year, such as you purchased significant new equipment, entered into a new lease, or adopted new accounting policies, let your auditor know ahead of time.
Yes, audits can be a stressful process. However with adequate preparation and communication with your auditor, it can be painless and simply do what it is intended to do: help ensure your financial reporting systems are sound.
OPTIMA AUDIT can help take the stress out of your audit.
Alana Thomas – Auditor
Optima Audit, April 2015