As calendar-year entities gear up for audit season, fostering collaboration between internal and external auditors can significantly streamline the financial statement audit process. Here are four tips to promote a more effective partnership.
1. Maintain Regular Communication
Establishing regular meetings between internal and external audit teams sets the foundation for an efficient audit. These discussions can address emerging issues like implementing new accounting standards or updating internal control remediation.
By comparing the internal audit team’s work plan with the external auditor’s audit plan, you can reduce redundant efforts and identify areas for potential collaboration. This ensures both teams can work in harmony while maintaining their independence and objectivity.
2. Share Internal Audit Reports
While external auditors can’t solely rely on internal audit reports, sharing these insights provides a comprehensive overview of the company’s operations and highlights high-risk areas that require special attention.
Assign a member of the internal audit team as a liaison to share these reports promptly. This allows external auditors ample time to review the findings, helping to avoid rushed decisions and enhancing the overall audit quality.
3. Assist External Auditors in Navigating the Organization
During fieldwork, external auditors need access to a wide range of personnel and data. Internal auditors can facilitate this by providing key documents such as:
- Organization charts
- Prior year audit reports
- Schedules of unresolved internal control issues
This support helps external auditors understand the company structure and identify key individuals to interview, streamlining the audit process.
4. Conduct Joint Training Sessions
Continuing professional education (CPE) is essential for both internal and external audit teams to stay current on new accounting standards, emerging fraud schemes, and advancements in auditing technology.
Joint training sessions offer a platform for sharing best practices and building stronger relationships between the teams. Additionally, shared training can be more cost-effective, splitting fixed CPE expenses and delivering value to both sides.
Partner with Us
Audit season is just the beginning of a productive partnership. Let’s explore more ways for your internal audit team and our external auditors to collaborate year-round. Working together enhances efficiency and increases the chances of delivering accurate, timely financial statements. Contact us today to discuss how we can support your financial reporting needs.
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