- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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