Building Relationships - Key to Audit Success
Risk Based Auditing Requires Strong Relationships
Dec 21, 2008
Because successful auditing is based on the integrity and volume of data that the auditor receives, it is important to develop relationships with management that facilitates the flow of information.
One of the troubling aspects of the typical audit process is that the auditor will begin his review with stale data. Often, the first step of any audit is to review workpapers from the last review. Mostly, the last review was completed at least two years ago. Much happens in two years and the data reviewed is usually not relevant for today's environment. That puts into question the integrity and relevance of the data upon which the audit is based. If there has been no relationship established between the auditor and the business then that may be the only data available upon which to base decisions. As such, the entire audit may then be put into jeopardy.
Information is the Auditor's Life Blood
On the other hand, if the auditor has established good working relationships then he/she would be up to date on changes to processes or policies, organizations, and even market conditions. Good relationships facilitate the flow of information. Information is the auditor's life blood.
A good relationship begins with common ground. For an auditor to build a successful relationship, he or she should know as much as possible about the client and the clients business. Sincere appreciation for the client and the clients accomplishments will provide an opening for discussion and begin the relationship process.
The Auditor Must Take Responsibility for the Relationship
Once the relationship has begun the auditor must take responsibility for its success. Periodic face to face contact is the most perferable way to develop relationships. However, one must ensure that these encounters have purpose, are of short duration and add value to the client.
Enhancing the relationship begins with working with the client's associates and direct reports. This provides added depth to the primary relationship and allows the auditor to gather more information regarding priorities, management style, preferred communication style and several other tidbits. The key for any auditor in working with the associates or direct reprots is to always represent the primary relationship in a positive light. The information received from these sources will help cement the primary relationship between auditor and client.
The Auditor Must Provide Value
The second and perhaps the most important aspect in developing successful relationships is providing value. Many auditors fail at relationship building because their sole focus is on what information they can obtain versus what information they can provide. The self centered approach of only getting information does little to encourage the client to provide the detail of information that would add value to the audit process. Being able to provide insight into the business strategies or processes will highlight to the client the auditors concerns and support of the client's success.
For those auditors who want to be successful in the risk based auditing process, the ability to develop and maintain relationships is a highly valued skill. Probably the most important skill that can be developed.
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