Auditing can be traced all the way back to ancient China, Greece and Egypt. But it wasn’t until the Industrial Revolution that the accounting profession took flight. In a time of such explosive business growth, business people realized that there needed to be a systematic way to detect fraud and enforce financial accountability.
Today, the audit profession has evolved into the role of business advisor. Auditors do not strictly analyze financial statements and determine and mitigate risk. Additionally, they deliver value added services to clients. As the role of the auditor changes so do the challenges that the profession faces.
Furthermore, there’s increased scrutiny as a result of ongoing initiatives to improve audit quality. The result is that firms have to know their clients and their industries. They must maintain continuous engagement throughout the year and hold planning sessions before every audit. That is what insures the best possible outcome from the audit.
Complex audit standards call for the right technology and reusable industry-specific-workpaper-templates to keep things moving along efficiently without adding unnecessary time to audit work. Understanding these standards, as well as educating clients on standards and new requirements, allows firms to offer guidance on all aspects of business interactions so revenue recognition is addressed from step one and not simply as an afterthought.
Finally acquiring and maintaining the best talent is a must for firms that specialize in audit. Recent grads are looking for cutting edge technology and remote work options when seeking employment. While more seasoned employees are looking for flexibility and ways to work smarter. A comprehensive on-boarding program is also essential in making sure that new staff have the tools and resources they need to succeed while being mentored by senior staff members.
Evolving into a firm with a future audit mindset takes planning, “buy-in” by all staff members and the best technology to support and grow the business.
Is your firm ready to make this shift? If so, get the white paper: Audit Is Evolving: Three Important Tips for Staying Relevant to discover the steps you need to take today to overcome any barriers to your own audit transformation.
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