Audit quality is a hot topic, with increased attention from the government and the AICPA. For many firms, the status quo will no longer be an adequate approach to audits. In a whitepaper published late last year, Wolters Kluwer audit experts Robin Penney and Stephanie Lanke wrote about common audit deficiencies and how to prevent them.
The whitepaper outlines 5 common deficiencies that firms face:
- Inadequate internal controls assessments
- Failure to link risk assessments to audit procedures
- Failure to identify or implement new standards
- Not understanding specialized industry and reporting situations
- Inadequate tailoring of a firm’s quality control system
Since there is no substitute for professional judgement, auditors must avoid a “checklist mentality.” Many practice aids can result in over- or under-auditing. Instead, a quality audit methodology should help auditors collect information and build knowledge so they can design the appropriate audit steps based on what they know about a particular client.
To learn more about addressing common auditing efficiencies, download the whitepaper: “Common Auditing Deficiencies Found in Peer Review.”