From the course: Preparing for an Audit

The importance of being there

From the course: Preparing for an Audit

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The importance of being there

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- Although not too many people would compare independent audits to parties, they do have one thing in common, which is, if the people don't show up, they just don't happen. And this is especially true when it comes to the key personnel that you're coordinating with at the company that is subject to the independent audit. But there's more to it than just making sure people are on deck, available and ready to assist if you have any questions, problems, or need to conduct interviews. There are a lot of different reasons why it's important to be there when it comes to an independent audit. There are three key reasons why it's important to be there when it comes to an independent audit. In addition to coordinating with the company team, the folks who are working at the company that's subject to the independent audit, there are two other reasons. First, is it eases data collection and review. Not all company records are digital. And that means if some of the records are kept in paper in filing cabinets, you might need to physically be on site in order to review that documentation. Additionally, if you have any problems accessing the digital records, it's usually a lot easier if someone's onsite and can coordinate with the finance professionals, working at the company that's subject to the audit. The third and final key reason why it's important to be there, is that it makes testing and sampling most effective. In some cases, you might need to verify assets or do testing and sampling when it comes to inventories or other physical transactions. If that's the case, it's difficult to do if you're not on premise and being there is quite helpful. In some, there are several critical reasons why it's a best practice to be onsite if you can, when you're conducting an independent audit.

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