September 2012

When 1 + 1 = 3…Testing Estimates and Assumptions

Reading Time: 2 minutes The Importance of Testing Estimates and Assumptions
Contrary to belief, accounting is not a field that is black and white in application. Organizations are allowed to “estimate” certain items or mark others to fair market value or depreciate some in a manner of their choosing until the book value reaches zero. Each of these has some sort of effect on income statements and balances sheets. In theory, devious organizations can manipulate these items to their benefit. As part of integrated internal audit engagements (i.e. financial, operational, information technology & compliance), it is beneficial for

So You Have an Audit Function, NOW WHAT!?

Reading Time: 2 minutes Many organizations ranging from small to large, public to private are investing in internal auditing functions. Some do it only because they are mandated by law, others because it is a good personnel development tool, and still others realize the benefits of having internal consultants. Organizations can reap substantial benefits from an effectively utilized audit function. However, an ineffective internal audit execution strategy can waste money and time and frustrate audit personnel. The following 4 practices can significantly impact

4 Audit Client Types

Reading Time: 2 minutes I recently wrote about 4 different auditor personality types. This article received a lot of visits, votes and comments. Check it out if you have not already. The purpose of that article was to identify some of the personality traits that we as auditors exhibit. Because communication is a two way street, today I want to discuss 4 audit client personality types. We must recognize

Don’t forget to ask for evidence

Reading Time: 2 minutes Identifying risks and evaluating risk mitigation techniques requires auditors to gather evidence to support conclusions. This evidence must be sufficient, relevant and reliable. Classic textbooks on auditing divide evidence into several categories, however,

Auditors, Embrace Your Non-Expert Status!

Reading Time: 2 minutes Have you ever had a client protest that you could not possibly audit their area because you are not an “expert” at “what we do”? This is a very difficult situation to encounter. Oftentimes, we attempt to “prove” to the client that we are qualified to perform the audit. We begin listing our skills and experience to demonstrate our proficiency. The truth is, we

Scroll to Top