Post-audit debrief: How to review your year-end financial audit
December 13, 2019
Audits are costly and time-consuming exercises, so it’s important to review your audit results to ensure you’re getting the best value for your money.
An audit provides an independent opinion on the financial statements of a business or organisation, making sure the financial statements are fairly presented and in line with accounting standards.
Businesses are increasingly viewing audits as opportunities rather than obligations, providing valuable insights into their strengths and weaknesses.
If you have just completed the year-end audit process, consider the following questions:
- Was a pre-audit meeting held to discuss the audit process, client input obtained and the responsibilities of each party set out prior to the end of the year?
- Has the timeline set out in the planning phase been adhered to?
- Was the audit purpose and scope clearly set out and communicated to management during the planning phase?
- As part of the planning process, were the risks appropriately identified and addressed throughout the audit process?
- Were management requests and concerns incorporated into the audit and reported on?
- Have you received a letter to management highlighting areas of improvement and recommendations to mitigate risks?
- Were the points in the management letter clear, relevant and accurate? Did those points include new and future accounting standards affecting the entity and clearly reflects that the auditor understands your business?
- Have you been made aware of the new definition of ‘large’ proprietary company that became effective as of 1 July 2019?
If you responded ‘no’ to any of the above questions as a result of the audit process, you should consider appointing a new auditor.
Don’t wait until next year if you are unhappy, get the ball rolling and start looking for a new auditor now.
Some entities require ASIC approval prior to changing auditors, so it’s best to start early.
LDB Group offers special purpose and financial audit services to a range of clients, in addition to due diligence, internal control evaluation and specialised assurance assignments.