Presentation Audit Auditors Challenges

CHALLENGES FACING AUDITORS IN DISCHARGING THEIR RESPONSILITIES

PRESENTATION OUTLINE INTRODUCTION CHALLENGES FACING AUDITORS HOW IT CAN BE SOLVED CONCLUSION

INTRODUCTION Auditors play a critical role in our community There are some challenges that we should understand that facing today’s auditors in providing their services to the client so as to establish a quality audit report

CHALLENGES FACING AUDITORS Preparation Of Information & Documentation Clients provide insufficient information that required by auditors

Communication Between Auditors & Clients Staff at the client’s office did not want to cooperate with the auditors The client’s staff are lack of understanding of the objectives of auditing

CHALLENGES FACING AUDITORS Definitive Standards that are Hard To Understand Technical words regarding to Client’s business operation sometimes hard to understand by auditors. Delaying of auditors’ works Less time can be spend on more critical aspects of the client’s financial statements

CHALLENGES FACING AUDITORS Geographic Reach Of The Clients Office Client’s office are situated far from the auditors’ office (to reach for documents & other information) Auditors need to incur more costs not only for the transportation, but also for the whole project (papers, printing, phone calls etc) Bearing the risk of late payment by the clients

HOW THEY CAN BE SOLVED Improve Audit Quality By focusing on clients that value audits, audit firm can work on improving the audit quality Auditors need to be willing to exercise more judgment in assessing areas of business risk Auditors have to change their mindset – not to only focus at cost-cutting

HOW THEY CAN BE SOLVED Refocus On The Auditor’s Professional Responsibility Because of financial challenges in auditing profession, auditors have recast their role as ‘providing value for the client’ neglecting their professional responsibility Auditors need to flashback why they were granted a statutory mandate for performing audits for their clients create a culture in their firms that recognizes this celebrate

HOW THEY CAN BE SOLVED Improve Their Audit Planning & Strategy Auditors need to have an efficient & effective audit strategy Always make early preparation Make sure they always obtain preliminary knowledge of the industry of the entity to be audited Emphasized on payment method that can encourage their client to make payment soonest possible

CONCLUSION Give opportunity for others to think about the challenges faced by auditing profession today Auditors must find the appropriate ways to overcome those challenges (reduced the risk bared & to improve the quality of their audit works)

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