Our list ranges from beefing up internal audit to avoiding posh steakhouses for those working lunches.
Alix Stuart, CFO.com | US
January 24, 2008
Auditing staff should use professional tools for working papers, data analysis, risk assessment, continuous auditing and monitoring, etc. Skilled data mining can allow more coverage in the same or less time. Would you rehire a plumber that used slip-joint pliers instead of specific fitted wrenches on your water pipes?
Posted by Donald Sparks | May 27, 2011 08:38 am
I find these methods useful. Especially the recommendations to reduce legal entities and to have known repeatitive support available in advance. The comment one reader had regarding auditor vreluctance to adhere to AS5 is valid. That though should be managed by a strong Audit Exec. Mark Speck VP of Internal Audit LCC International
Posted by Mark Speck | May 08, 2008 05:13 pm
Excellent article! In my experience though, external auditors rarely rely on internal auditors' work, hardly use statistical methods for sampling, and tests for internal controls are repeated every year with minimal change in the sample size. Examine 85% of transactions in year 1...examine 85% of transactions in year 2...examine 85% of transactions in year 3! I think if external audit managers and seniors paid more attention to customizing audit strategies memos and audit programs, and allowed client personnel to participate, then external auditors dont have to log so many hours of fieldwork and ultimately generate cost efficiencies that benefit both parties.
Posted by Richard Co | February 06, 2008 12:20 am
Posted by Wael Bibi | January 25, 2008 12:51 pm© CFO Publishing Corporation 2009. All rights reserved.