AUDIT & ASSURANCE

How about lending new hires out to your best clients?

By Alan Anderson, CPA
Transforming Audit for the Future

I’m fortunate to have two great former auditors working with me in Accountability Plus – my son Tyler Anderson and Corey Schmidt, who met working together as auditors. But that firm – like most firms – was focused on total hours worked and realization rates, and had no tracks for auditors who didn’t fit in the normal staff to senior to supervisor to manager to partner progression.

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As Corey told me, “Tyler and I were good with workflow management and managing processes, and that’s what our firm should have had us focus on.” Corey demonstrated that when he was assigned the employee benefit plan practice at that firm, and through his leadership, improved fee realization from 60 percent to 100 percent.

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Empowerment in audit has become an oxymoron. It doesn’t have to be that way.

By Alan Anderson, CPA
Transforming Audit for the Future

I don’t know if it was luck or by design, but when I started out at McGladrey, I landed on a team that was already doing the kinds of innovative work that I coach teams today to try out. I’ve never been a status quo type of person, so that resonated with me. I was always trying to find a better way to do things.

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In my first six months, we were already working with data, using the primitive data software tools available back then, or, more likely, that we built ourselves. I was in an environment that created the art of what’s possible. We were willing to try new things. I didn’t have mentors or co-workers who would tell me “That’s not the way we do it here,” so I was able to actually do the things I thought about.
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AI, blockchain and other technologies elevate our responsibility to understand what these tools are telling us.

By Alan Anderson, CPA
Transforming Audit for the Future

“The only thing we know about the future is that it will be different.” – Peter Drucker

A big challenge for firms has always been change management. We’re all used to doing our work the way we’ve done it for years. Many auditors learned to audit by looking at last year’s workpapers and repeating that approach, but with this year’s numbers. So when I tell groups of auditors that the way we’ve been auditing since the dawn of time will have to change, there’s pushback.

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Change is hard. No one wants to change unless that change will bring significant, measurable results. Implementing just one or two of the ideas I have discussed in my posts can be uncomfortable and unfamiliar. Innovation takes most auditors way outside their comfort zone. But change is also essential, unless we’re all willing to see our profession go the way of the dinosaur.
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Plus best practices for year-round and remote audits.

By Alan Anderson, CPA
Transforming Audit for the Future

Firms these days are throwing technology at audit and calling it innovation. But if you try to roll out too much at one time, that’s a disaster. Your people won’t have any time to talk to the client and figure out what’s going on in the business if they’re too busy trying to figure out how all the pieces of technology all work together.

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A better approach is to prioritize the technology rollouts and cut those in half. Focus on the two or three that are the most important. If you try to do too much, your implementation will fail. A partial implementation won’t get you anywhere. Partial implementations tend to result in complicated workarounds, so the new tech not only doesn’t save time or effort, but it actually makes it harder to get the work done.
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