Like any profession and service companies, auditing firms are facing their own kind of unique challenges that they need to cope up with. If you are a company thinking of having your organization go through an audit, knowing these auditing challenges might make the lives of your auditors little easier as you can provide assistance on solving these problems:
- Incomplete data
One of the top challenges that auditors faced is the lack of data and information for auditing. Most probably, this can be blamed to disorganized filing and neglectful accounting practices. A lot of audit firms in Dubai already encountered this kind of problem. If they are faced with this kind of challenge, they usually take note of this on their report as a disclaimer of opinion, wherein the auditor states that he is not able to finish the report due to lack of documents and would recommend that the company goes to another series of auditing once all the documents asked and required are completed.
As much as possible, auditors would like to give a complete and correct report at all times. Waiting for the documents to be completed would mean they still have an unfinished report or business with the company.
- Uncooperative board of members
There are instances when the members of the board might be the reason for the delays of auditing or in the worst case scenario, for it not to be completed or finished. Working with an uncooperative board (e.g. not giving complete documents or not fully disclosing information) will not only make an auditor’s life difficult but it can also raise suspicions within the system.
- Chaotic internal system
Auditors not only deals with numbers and financial statement, but there are times wherein they need to delve in the internal system to spot any gaps and discrepancies. And most of the time, the problem of this kind of auditing is not having solid system and procedure to run the operations. There are some companies who might need to build their system from the scratch and there is only so much that an auditor can do on this case. The company might need to get an organizational developmental team to create a fluid system that would benefit all parties.
- Large sampling size
Working with a big company might seem like a privileged for auditors. But on the hindsight, it would mean having to deal with big sampling size and extracting data from such a large population. But auditors can find ways to make this happen, but with the help of the company as well. The auditors will be responsible for the selection, but it is the management who will ensure the cooperation of individuals that will be part of the sampling size.
- Data security challenges and breach
The information that auditing have is sensitive and confidential since it pertains to specific and important data about the company. With this kind of data in their hands, they become susceptible to hacking and information breach.
Read more about auditing challenges here.