Do you have an audit coming up? Here are a few tips to help you as you prepare to engage Auditors.
- Draw up, present to and agree on a clear timetable with the auditors showing when each activity is due. This will ensure that set deadlines are adhered to and reports are presented timeously.
- Allocate a qualified internal person to be responding to requests from the auditors and ensure that the audit is running smoothly. This will also ensure that audit deadlines are met.
- If previous audits have been held, use the previous audit report and report to management as a guideline to clear prior year issues raised by the auditor.
- Engage auditors in advance on what documentation is required by them and compile a file specifically to address their requirements. This will include all requests from the auditor and reference it to relevant supporting documentation. If your organization does not have a computerized system to do that, a physical or hardcopy file can be created.
- Prepare a separate copy of the report to management that will be attached to the created audit file to document how the issues raised in the previous audit have been resolved.
- As the auditor is aware of the issues affecting your organization, request a meeting or summary from the auditor on their identified key risks and ask how you should handle them.
- Ensure always to maintain an updated risk register which clearly includes the following:
- Date raised
- Risk description
- Reason for the risk
- Likelihood of risk occurring
- Impact of risk
- Level of risk
- Personnel involved in managing the risk
- Ways of mitigating the risk
- Cost of the strategy
- Risk review date
- Ensure to be up to date with changes happening in the macroeconomic environment. There should be regular checks of updates of Statutory Instruments, Fiscal and Monetary policies. The changes may be affecting your organization’s operations.
- Engage experts where necessary.
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