How to Build a Solid Working Relationship with External Auditors
Audits might not top your list of favorite things, but they’re a necessary part of doing business. But what if, instead of dreading them, you could approach your next audit with confidence, knowing you’ve got a strong partnership with your external auditors?
The key lies in collaboration. A great relationship with your auditors doesn’t just happen by chance — it’s built through thoughtful communication and preparation. Ready to transform your audit experience? Here’s how to make it happen.
How to Build a Solid Working Relationship with External Auditors
- Keep auditors in the loop and proactively engage them
- Develop a clear auditing timeline
- Focus on collaboration and alignment with external auditors
- Prepare for audits ahead of time
- Think of external auditors as partners
- Learn and improve by conducting a post-audit debrief
- Use audit findings to enhance cross-training efforts
Keep auditors in the loop and proactively engage them
Whenever your business makes a significant move or embarks on a strategic transformation — like acquiring another company, implementing a new system, or restructuring operations — share that information with your external auditors as early as possible.
This is essential for helping auditors set the stage for what’s to come, as they will be able to allocate the right resources and offer insights on complex reporting or accounting issues.
By proactively engaging with external auditors, you can position your company to tap into their expertise before problems arise.
Develop a clear auditing timeline
Creating a comprehensive timeline for the year ensures everything will run as smoothly as possible once the external auditor steps in. From quarterly reviews and walkthroughs to IT and control testing, set expectations early and check in often.
Some audit firms have internal deadlines for control testing. If your team isn’t ready, delays can pile up, creating unnecessary stress and cost. Coordinating timelines upfront ensures everyone has what they need, when they need it.
For best results, involve your internal audit and IT teams in these discussions. By aligning with external auditors, you’ll reduce redundancy and save precious time for everyone involved.
Focus on collaboration and alignment with external auditors
External auditors often rely on internal audit work to lighten their load. If done well, this can save your company money by reducing external audit hours.
Start by clarifying expectations. What templates, sample sizes, and documentation will the external auditors need? Align these details with internal audit processes to create a seamless workflow. The more structured and transparent your approach, the more efficient (and less costly) the audit will be.
Prepare for audits ahead of time
Picture this: Your auditor asks for a document, and instead of scrambling, you calmly pull up a well-organized, easily accessible file. Feels good, right?
Preparation is essential. Obtain the PBC (Prepared By Client) list early and ensure all requested documents are ready in advance. Housing your control documentation in a central repository is a simple way to avoid last-minute issues.
And don’t underestimate the importance of walkthroughs. Use these sessions to educate auditors about your processes and controls, providing a chance to build trust and show you’ve got everything under control.
Think of external auditors as partners
It’s easy to fall into an “us vs. them” mentality during an audit. But the truth is, external auditors are there to help ensure your company’s financial health. Treat them as partners, not adversaries.
Set up regular status calls to keep everyone aligned on progress and challenges. If issues arise, communicate them early. Remember: Nobody likes surprises. The sooner you flag a potential road bump, the sooner solutions can be found.
And don’t forget to acknowledge their work. A simple thank-you at the end of a project goes a long way in building goodwill for future audits!
Learn and improve by conducting a post-audit debrief
An audit shouldn’t end when the final report is issued. A post-audit debrief is your chance to reflect. What went well? What could be improved? Use this feedback to refine your approach for the next year.
This is also the perfect time to leverage your auditor’s insights on regulatory changes. Staying ahead of updates, like PCAOB reviews, can save you headaches in future audits.
Use audit findings to enhance cross-training efforts
Lastly, leverage your audit findings to explore opportunities for cross-training throughout the year. Whether it’s sharing insights about your industry or learning about new audit methodologies, this collaboration fosters a deeper understanding on both sides. It’s a win-win that builds trust and enhances expertise.
Final Thoughts on How to Build a Solid Working Relationship with External Auditors
Audits don’t have to feel like a chore. With clear communication, thoughtful preparation, and mutual respect, you can turn them into an opportunity for growth.
At Bridgepoint Consulting, we specialize in helping organizations navigate the complexities of audits, offering tailored solutions that streamline the process and strengthen internal controls. Whether you’re preparing for your first audit or looking to refine your approach, our team is here to help.
Let’s build bridges, not barriers. Explore our audit readiness and support services here or contact us today at the button below.
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Ready to make your next audit a success?
At Bridgepoint Consulting, we specialize in helping organizations navigate the complexities of audits, offering tailored solutions that streamline the process and strengthen internal controls. Whether you’re preparing for your first audit or looking to refine your approach, our team is here to help.
Let’s build bridges, not barriers. Explore our audit readiness and support services here or contact us today at the button below.
