The insights you deliver don’t just add value to the client but also result in a better audit.
By Alan Anderson, CPA
Transforming Audit for the Future
Business owners and organizations typically regard the annual audit as a cost or “a necessary evil” that adds little or no value to the business. In contrast, auditors routinely say that their audit is different and absolutely does add value to the company or organization. To be sure, all audits have a purpose, as they are generally required to maintain financing or to meet regulatory requirements. But is the auditor genuinely adding value?
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There are numerous dictionary definitions of “value,” all centering around the concept of something being useful. “Adding value” should then mean making something more useful. When you plan an audit, are you thinking of ways to make the audit more for your client? You will only convince your clients that you deliver value when you back up your words with action.
Now think about some of your best clients. There’s probably a direct correlation between the value you bring them when you’re doing the audit and any additional services you render for them. The clearest way to demonstrate value is by making the audit relevant and delivering more than an audit report.
Relevance means zeroing in on the intersection of what’s important to you, what your clients are interested in and what benefits stakeholders. The audit becomes valuable for improving your clients’ businesses, allowing the stakeholders to get what they need and making the work more enjoyable for your team.
By taking the opportunity to truly understand your client’s business and going above and beyond the mandatory requirements, you will bring value to the audit. As you gain new insight into the client’s business and operations, you will increasingly add value to the audit. The insights you deliver don’t just add value to the client but also result in a better audit.
Think about how you can use technology to deepen your understanding of your client. Deepening your understanding is essential if you want to contribute ideas and add value to the audit. It’s essential for bringing relevance into the audit.
Add relevance at every step of the audit.
When you think of how you perform an audit, you perform distinct activities during the different stages. First, there’s the planning stage, where you set up your game plan for conducting the audit. Next is fieldwork, where you gather audit evidence. The wrap-up stage follows, where loose ends are tied up. Finally, the audit report is delivered.
As we perform the tasks in each stage, our values of objectivity, independence and professional skepticism are woven throughout. Similarly, if you say the audit is relevant, you need to start by weaving relevance into the fabric of your firm’s culture and into all the stages of your audits.
Your firm will only create relevance for your clients if your firm’s processes are built on relevance. Relevance can’t be just an add-on when you have time. It needs to be part of how your firm approaches all their work.
