Posted at 12.31.2018
The standard requirement of auditing requires auditors to perform audits of the firms independently and without the interference from the concerned company. Regarding to few studies the auditors are usually hassled by the companies' top management while the auditors are doing the audit report of the concerned companies, the studies also have reported that the auditors usually includes their independence by giving clients with the consulting services like non-audit services, appointment on auditing records and also on things not associated with auditing. However this paper is actually about the issues encountered by auditors while doing the audit of any business. The paper requires that how any management of the company places obstructions and hurdles for the auditors while doing auditing and also how and why the company management doesn't support the audit program making the audit for the auditors fairly difficult to perform. (Spanneut, 2012)
There are various problems that are encountered by the auditing companies while doing audits. The paper involves the problems confronted by the famous auditing company KPMG while conducting
Problems Faced by Auditors
There are various issues that are experienced by the auditing companies while doing audits. However, several basic issues that are experienced by auditing companies are described by famous auditing company KPMG. Some of those problems are mentioned below: (heena Carmichael)
First and the foremost problem faced by any auditing companies nowadays is insubordination between auditors and the management of the company that the auditing needs to be done. Relating to many studies the company professionals do not have the understanding of the importance of the business audit article. Hence, they do not cooperate much with the audit officials in order to provide them with complete information. Relating to ISO 19011 every executive team of any company must placed an audit requirements but in most of the situations many executive teams of multinational companies fails to understand or read this important term as place by ISO 19011. Therefore, matching to KPMG one of the basic step t overcome the issues created by the professional team of the company is to tell them the importance of the auditing through pros. Furthermore it has now become the job of auditors to help make the companies executive team understand the reasons for performing inner audits including all other types of audits. (Kieso, (2012). )
Auditing these days has become requirement of all multinational companies but still many companies don't realize the importance from it being done through professionals. Many companies to conserve the business get the business's auditing done through unprofessional that soon after cost them a great deal in method of money and loss. As per KPMG in order to increase the performance of auditing which usually gets damaged by the insubordination of the executives of the company, the auditors' must communicate with the professionals as the communication the main element to solve many disputes. The communication can be in form of audit reviews between both the items i. e. the auditors and the executives of the companies. Also auditors should make an effort to encourage the working of the professionals by re-emphasizing management's role in the audit process.
KPMG being among the finest auditing firms motivates auditors to connect to the owner's or professionals of the business. So that the auditor are certain to get better idea of auditing and will able to package with difficult auditing easily.
Another problem that is experienced by auditors is audit planning. Every year auditors guaranteed themselves that yr their audit reviews will be much better than the previous calendar year but nonetheless the results remains the same. This problem occurs as a result of audit is done at the previous moments which causes a lot of cause and the task is done under stress and deadlines. (Bragg, Bragg, S. M. (2011))
As we all know that the audit prep is the most vital part associated with an audit program. So to be able to address this issue an auditor must always track time as enough time has always been the main element to success particularly when it comes to auditing. One must plan his time at least two weeks before the audit is usually to be done. Audits that are under stress and deadlines tend to be hazardous.
It is another factor which includes described by famous auditing businesses. Matching to these firms if auditors don't have an interior control then they will never be able to perform auditing of the business properly. It's the job of auditors to have an understanding of interior control as it is very important for the auditor and lays within the framework of the audit regulations. It is further enunciated in the framework of audit rules and regulations that the auditor must see that interior control of has been properly designed and carried out. It all depends on auditors if indeed they want to they can transform adjust or alternate the even the timings like the technique of audit. However such changing's will be entirely based on the evaluation of the inner control of auditor like the results that should come out from the internal court. For example programs that are badly and badly manipulated have significantly more chances declining and crippling, so auditors should focus their skill on such programs.
In addition to the auditors gets complete understanding of inner control through different forms like queries, inspection, evaluations, monitoring by going right through different document and details and by researching previous auditing information and reports. Based on the report by KPMG different auditors or different audit companies use different kinds of methods depending after the audit aims and risk engaged also the data auditors have regarding the internal control gain.
Hence as surveyed by famous auditing company like KPMG it's figured auditors to handle problems created by executives of the company and which affects the performance of auditors. However these obstacles can be beat by simply conversing and conveying with each other. With subordination of both the factors a good and flawless audit statement can prepare yourself.