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As an entrepreneurial audit firm of commercially minded professionals, we understand the importance of reliable financial information to both our clients and investors, which is why we are critically mindful of avoiding audit failures. In a bid to service our clients as best as possible, we have identified common audit failures which we avoid at all costs.
Audit Failures and How To Avoid Them
Six of the most common Audit Failures
  1. Lack of Records or Documentation
    Many audit failures are attributed to the inability to identify documentation or records that support certain findings. Relying on the process of inquiry alone is a very poor form of auditing evidence. Records and documentation provide the proof often required during audits.
  2. Human Error
    Human error can be avoided by the implementation of auditing controls and automatic processes. Systems and technology exist to remove the element of human error from auditing. With the latest in technology and the advancement in this sphere, many systems can be automated and taken care of systematically which improves a smooth audit process.
  3. Compliance Culture
    An auditing team takes on the attitude of management and mentors within their firm. If auditing partners stress the importance of compliance, the auditors will uphold this principle. The firm needs to set the priorities of an audit which filters down from management down to administration ensuring the entire team is on the same auditing page.
  4. Poor Internal Assessment
    The entire auditing team working on a client’s financials should all be on the lookout for shortcomings, even within their own team. The adoption of internal assessments prevents mistakes from slipping through the cracks and ensures a better risk assessment starting from the inside out.
  5. Poor or Non-Existent Risk Assessments
    This audit standard should never be ignored. Without thorough risk assessments, resources are wasted on controls that ignore the risks and affect audit findings.
  6. Audit Periods
    Most audits can take place during the auditing period but there are those scenarios where auditing controls need to operate on a consistent basis. The latter requires control work regularly and should be attended to even when an audit is not being undertaken. These are the processes which your auditing firm should remind you of when necessary.
Our professional auditors have specialised knowledge of specific industry sectors, allowing us to perform each audit with a unique, value-added perspective. Proper planning, testing and accurate reporting, all with a strong emphasis on risk assessment, define the MMS audit philosophy and have made us a leading audit firm within South Africa. Get in touch with our team for professional auditing services tailor-made to your business needs by calling 011 672 0020, emailing info@mmsgroup.co.za or Get a Quote online.