For many, the weeks preceding the end of the financial year can be arduous, distracting and sometimes disruptive.

This is the time when the whole year’s bookkeeping, records and corporate governance comes under scrutiny. An awareness that the eagle eye of an auditor is sifting through the books prompts questions like: Have I done a good job? Have a made a mistake?

f I have acted honestly and ethically then if I’ve made a mistake I can defend myself - right?

One of the most difficult parts of the auditors job is reassuring the client and relaying the message that, more often than not, it really doesn’t matter if genuine mistakes are made.

Human errors do happen from time to time and a good auditor/client relationship should not be one that focuses on individual mistakes, rather the auditor is forward looking. The focus of an audit is on the significant risks and material areas of the company and the truth is that a rogue ledger mis-posting often isn’t important.

What is important are the systems and controls in place to prevent mistakes happening in the future.

An auditor is well placed to understand how business systems fit together and a good working relationship will include both an independent and critical assessment of how the controls are working in the business and whether they are the reasonable and practical.

Audit fees can be a significant cost for an organisation and whilst it is important that the auditor remains independent, each audit exercise is an opportunity for appraisal of controls, an opportunity for improvement and a forum for discussion.

It is the time to take a step back, look at the bigger picture and ask pertinent business related questions.

Certainly there are formalities that auditors need to adhere to, including specific questions that have to be asked of the client. Every auditor will quiz management about fraud and the associated risks, as well as questions about compliance with laws and regulations.

These questions are a requirement prescribed to the auditor in the holy bible of audit regulations.

However, a good audit should not just be a fixed list of questions and a box ticking exercise, and it certainly shouldn’t feel like one. The auditing standards are not so prescriptive and inflexible that they compromise the value a company can obtain from being audited.

If you would like to talk about your audit requirements then give Harding Lewis a call and talk to a member of our experienced audit team.