AUDIT & ASSURANCE

Audit Firms Nervous about New Tech

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A “speed revolution” is on the way. Are you ready?

By CPA Trendlines Research

“Progressive technology” is about to boom.

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But are audit firms on the cusp of the boom-to-be? Apparently not. A Thomson Reuters survey of audit firms finds that there’s still a big gap between ambition and execution. Only 14 percent of auditors in the U.S. can brag that a “digital transformation” is well under way at their firms, though another 35 percent say they are starting to implement progressive tech.
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Say Adios to Audit Fee Pressure

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What client goes out for an audit proposal when their auditor provides relevant advice and useful suggestions?  

By Alan Anderson, CPA
Transforming Audit for the Future

Your client likely engaged your firm for an audit because they need an audit. But what is it that they want? They don’t want a stack of paper delivered months after year-end. Like anyone else, they focus on “What’s In It For Me?” or WIIFM.

MORE: Use Eight Audit Exit Items to Deepen Client Relationships | Exceptional Audit Client Service Demands Effective Communication | Deliver More Audit Value by Getting Out of the Conference Room | Know Your Three Audit W’s | Planning Lays the Foundation of Audit Relevance | How Do We Drive Relevance in Audit? | Before the Audit: More Than Just Planning | Are You Correctly Identifying the Relevance Intersection? | Lack of Relevance Drives Audit Commoditization | Five Crucial Attributes for Successful Audit Leadership | Traditional Audits Don’t Deserve Premium Billing
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They want relevant ideas that will help them improve their businesses. They want to learn from you about your experience with others in their industry or in a similar situation. They want a relationship with you to talk about their business in plain English. They want someone who can explain the accounting standards and how they impact how they report their results.

Remember our definition of relevance:

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Use Eight Audit Exit Items to Deepen Client Relationships

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Developing a deep understanding of an industry is a surefire way to make your audits more relevant.

By Alan Anderson, CPA
Transforming Audit for the Future

Making the audit relevant doesn’t stop when the audit report is signed. To demonstrate your value and stand out from the competition, deepen the relationship with the client.

MORE: Exceptional Audit Client Service Demands Effective Communication | Deliver More Audit Value by Getting Out of the Conference Room | Six Essential Elements in Audit Planning | Before the Audit: More Than Just Planning | Five Crucial Attributes for Successful Audit Leadership | Put the Ethics Code to Work for Your Clients and Your Firm | Is Audit in Crisis Because of Definitions?
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Far too often, the exit conference is a wasted opportunity to demonstrate the relevance of the audit. That’s why I recommend that a standard PowerPoint presentation be used to discuss the audit. This will include the required communications and ideas for business improvement and will be designed to facilitate open-ended, two-way communication. Here’s a basic outline of the information to be covered:

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Exceptional Audit Client Service Demands Effective Communication

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Drop the devices and go talk with clients.

By Alan Anderson, CPA
Transforming Audit for the Future

Most firms have guidelines for turnaround time and response times but stop there when it comes to delivering excellent customer service. Does your firm have a definition of what superior client service might mean in an audit?

MORE: Deliver More Audit Value by Getting Out of the Conference Room | Know Your Three Audit W’s | Planning Lays the Foundation of Audit Relevance | Are You Correctly Identifying the Relevance Intersection? | Traditional Audits Don’t Deserve Premium Billing | Turning Audit & Accounting into Assurance & Advisory | Stop Sending the Wrong Message to Audit Teams
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Remember that relevance is the intersection of what your client wants, what you think is important and what the stakeholders need. Providing superior client service is definitely contained within that intersection.

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Deliver More Audit Value by Getting Out of the Conference Room

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Create deeper audit relevance by diving into your client’s business … in the actual business.

By Alan Anderson, CPA
Transforming Audit for the Future

Once your team understands the critical role planning plays in creating a foundation for audits and how that enables your team to have the mental bandwidth to deliver relevance, it’s time to focus on other ways to develop a relevance culture in your firm.

MORE: Know Your Three Audit W’s | Five Ways to Prevent Audit Bottlenecks | How Do We Drive Relevance in Audit? | Lack of Relevance Drives Audit Commoditization | Four Basic Understandings Every Auditor Must Master | WANTED: Great Audit Mentors | Closing the Audit Expectations Gap
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At the planning stage, set out the expectation that everyone will add value to the audit by identifying areas where the client can improve. One way to do this is to assign each audit team member the task of interviewing someone outside of accounting who has something to do with their audit area. Have your team members ask this person these five questions and write up a summary of what they learned:

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