In the time-constrained journey of an audit, Auditors and auditors often find themselves at cross-purposes, often overrunning the audit timeline as neither party is prepared to give ground. This article provides a perspective on how to achieve ‘Audit-terly’ Harmony, where both parties can meet on the bridge that ultimately leads to an organisation’s achievement of its goals and objectives.
If you have been on the Auditee side, you may be familiar with the anxiety, fear, and dread when you receive notification of an upcoming audit. Particularly for those areas that are typically less audited. Finance Folks, you will be well familiar with the audit process, so feel free to skip ahead. For the rest of us, why is it that Audit strikes fear in our professional being? Is it perhaps that we are under pressure to achieve other goals, objectives, and projects, that are already overrunning, while we are understaffed? While the Auditor may have had this audit in their Annual Audit plan, guess what, no one thought to inform the people executing the day-to-day work about the audit plan. So, now he/she will have to find time to accommodate the auditor and all their questions – I guess they can skip dinner and their child’s football practice this evening, while they catch up on their day job. Are we as Auditees resistant to provide information, answer questions, provide documents, because our manager told us, under no circumstances are we to “air our laundry.”? It might also be because that policy or procedure is still in draft, although we said we would finalise it by end of Q1, but our team member resigned and there’s a hiring freeze, so projects got re-prioritised. Our Auditee’s are working flat out to achieve the organisation’s goals and objectives, exceed our customer expectations, innovate products and services, but sure, we’ll carve out time to tick off that audit box.
From the Auditor’s perspective, the audit is one of the critical tools in protecting the organisation, and as such an Auditor is often proud to upholding the highest professional standards, always be objective, independent, after all, we are a line of defense. Who else is going to protect the organisation, before the external guys come in? The annual plan has been well thought through and communicated via the governance structure (the management board for example.) We are only asking for documentation you have already said you have. We are asking how effective and efficient your controls are, so that we can help you improve them.
Therein lies many of the challenges during an Audit. Different language, auditees use policies and procedures for control. Information not effectively being cascaded through the organisation, although we have the tools and technology now. At the heart of the challenge, are human beings, who are susceptible to fear.
So, while Auditor’s are known for their utmost professionalism, and ability to keep the emotions out of the audit, it would go a long way to have empathy for the Auditee. Understand that they feel that their work is being reviewed and critiqued. Having open communication and a collaborative approach with an Auditee, will enable the Audit to go smoother and faster, if the Auditee understands that the Auditor is not their to mark their homework, or show them up.
Auditee’s that have had a painless audit experience, are often willing to accept the audit findings, if they see and feel that the Audit is adding value to their work. Auditor’s can often bring that outside fresh perspective with great recommendations to improve the business. Weeks spent on refuting findings, locating evidence, can be eliminated by enabling a collaborative audit.
In conclusion, having a shared understanding of both the Auditee and Auditor perspective can open the doors to a journey of understanding and collaboration thereby bridging that gap between resistance and acceptance, leading to ‘Audit-terly’ Harmony i.e. Audit Plans completed on time, and higher first-time acceptance rate of findings.