In continuation of our previous discussion on the tips or steps to follow for successful auditing. Here we are to add a few more points
Auditing involves a lot of paperwork. Before submitting and producing the necessary work papers, ensure that every information and data is thoroughly verified. It is a good procedure to delegate each task to a responsible person/team and schedule a time for submission. Financial statements and other fiscal data or paperwork should be ready whenever the auditor asks for it.
Organizing data and keeping it accessible for future reference is a good habit. Although auditing is a yearly process, recording the list of transaction lifecycle across the years in the form of folders for a ready reference to the team and the auditor is an appropriate process. These cycles can be divided under the titles cash, revenue and receivables, expenses and payables, and so on. Retrieving of data is easier when the entire information is categorized properly. Apart from consolidating the information, ensure that they are password-protected so that there is no occurrence of data theft scenarios.
Clarifying doubts by raising the right question is the right way for a successful audit. If you start an auditing process with many unanswered queries and an unclear idea then it would result in an untimely delay in the auditing procedure. Auditors always welcome clarifications rather than haphazard paperwork that delays the process. The value of experienced qualified auditors cannot be undermined in this critical aspects and Spectrum is glad to bring such value to the customers at every phase of the audit process. Other than auditors asking appropriate questions and taking notes from the discussions from the concerned personnel for preparing footnote disclosures is an important step for successful auditing.
Once you are through recording all the year-end closing entries, ensure that the review schedules and work papers and in tandem with the trial balance. Assess the overall financial records and statements and their correctness. Crosscheck your financial statements to the disclosure checklist confirming that all the required information is noted. In case of any variances in the financial statements from year to year or from the budget to the actual amount, make a note of these differences and be prepared to answer the gaps.
As mentioned earlier it is good to be in the organization during the auditing process. Personnel related to the finance and auditing should be available during the fieldwork because although you have organized and submitted all the requisite documents and paperwork, the auditors might inquire about some additional information or supporting documentation or even explanation for some of the data. Tagging along with the auditors and providing them with the requisite information and papers will result in efficient and successful auditing. Again, internal auditors who hand-hold clients make the entire accounting systems foolproof and eases the burden for external auditors and the Clientele. Spectrum provides immense value to its clients in the Audit process through close coordination with all its Clients on regular basis.
The time between issuance of the audit report and the fieldwork, ensure that there is proper communication established with the auditor, as you might have to submit the requisite documents or open items that have requested during the fieldwork. Ensure that the meetings/discussions requested by the auditor with the finance committee or the board of directors is scheduled and accordingly attended. It is advisable to schedule a post-audit closing meeting with the auditors and the committee involved in order to record the results and the feedback.
While we have compiled the best possible steps to follow for a successful audit. Spectrum accounts guarantee that its professional services are a compilation of many smarter ways of extending guidance and facilities in the field of Auditing, Accounting, and more. Our in-house team of experts has adept knowledge and skillset that can ease your financial queries and hurdles.