{"id":914,"date":"2019-01-14T17:39:50","date_gmt":"2019-01-14T17:39:50","guid":{"rendered":"https:\/\/www.excelsisaccounting.com\/blog\/?p=914"},"modified":"2019-01-14T17:39:51","modified_gmt":"2019-01-14T17:39:51","slug":"4-ideas-for-fostering-a-partnership-between-internal-and-external-auditors","status":"publish","type":"post","link":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/2019\/01\/14\/4-ideas-for-fostering-a-partnership-between-internal-and-external-auditors\/","title":{"rendered":"4 ideas for fostering a partnership between internal and external auditors"},"content":{"rendered":"

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How can you help facilitate efficient, timely audit fieldwork? The keys are frequent communication and coordination between a company\u2019s internal audit department and its external audit firm throughout the year. Here are four ways to foster this partnership. <\/p>\n

1. Encourage frequent communication<\/p>\n

Scheduling regular meetings between members of the internal and external audit teams sets the stage for a more efficient audit process. You might discuss emerging issues, such as how the company intends to apply a new accounting standard or the status of internal control remediation efforts. <\/p>\n

In preparation for an audit, auditors can meet to compare the internal audit department\u2019s workplan to the external auditor\u2019s audit plan. This comparison can help minimize duplication of effort and identify areas where the teams might work together \u2014 or at least complement each other\u2019s efforts.<\/p>\n

2. Provide access to internal audit reports<\/p>\n

The external audit team can\u2019t rely exclusively on the internal audit department\u2019s reports to plan their audit. But sharing in-house findings provides the external audit with a bird\u2019s-eye view of the company\u2019s operations, including high-risk areas that deserve special attention. <\/p>\n

Designate an individual on your internal audit team to act as liaison with external auditors. He or she should be charged with sharing reports in a timely manner. This gives external auditors adequate time to review in-house reports and avoids hasty decision making.<\/p>\n

3. Help external auditors navigate the organization<\/p>\n

During fieldwork, external auditors need access to employees, executives and data dispersed throughout the enterprise. Internal auditors can share key documents compiled during their audit procedures.<\/p>\n

Examples include the company\u2019s organization charts, copies of audit reports from previous years, and a schedule of unresolved internal control deficiencies. This information helps educate external auditors and identifies employees to interview during audit inquiries. <\/p>\n

4. Conduct joint training sessions<\/p>\n

Both internal and external audit teams require continuing professional education (CPE) to maintain their licenses and improve their understanding of issues they might encounter during an audit. For example, training sessions might explain new accounting standards, emerging fraud scams and technology-driven auditing methods. <\/p>\n

Joint training sessions help auditors share best practices and forge lasting bonds with members of the other audit team. Plus, it might be more cost-effective for internal and external auditors to share the fixed costs of providing CPE courses. <\/p>\n

Win-win situation<\/p>\n

These four ideas are just a starting point. Let\u2019s brainstorm additional ways to foster collaboration between your internal audit department and our external auditors. This exercise will allow both teams to improve efficiency and increase the likelihood of producing timely, accurate financial statements. <\/p>\n

\u00a9 2019
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