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How Can We Solve Audit Problems?

Januari 18, 2023
2 mins reading

Daftar Isi

Good audits may help companies discover and flag errors before they go out of hand. They also ensure that the processes are running efficiently, showing compliance, improving relationships with other related parties, or even boosting customer satisfaction. Failure to address audit problems may lead to delayed issuance of audited financial statements and further business operation disruptions.

Let's start with a question, some key, and common problems, and finish with some helpful solutions.

What is an Audit Problem?

Many auditors wonder why most of the auditing processes are not working well or are poorly executed. One of the reasons is that every organization has its unique audit issues to address or even to correct. These issues may include internal control recommendations or reasons it needs audit adjustments.

Moreover, poor audits usually deal with inefficiency challenges and missed opportunities. They seem not to live up to their potential. Even still, we need to know that audit processes are designed to help any company or organization to find any issue or nonconformity before they turn into major issues.

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Key Problems in Audits

By and large, some key problems in audits may include the following reasons:

  • Lack of support from management
  • Internal conflicts of interest
  • Insufficient or no audit preparations
  • Inadequate purpose and poor quality, therefore, fail to meet broader expectations
  • Difficult or imperceptive auditees
  • Failure to collect adequate and competent evidence
  • Failure to write and publish audit reports on time
  • Weak regulation and supervision due to limited independence, powers, and resources

Of course, the above list can go even longer since every organization deals with its multiple problems and handles them differently as well. These audit issues may result in regulatory action by an external agency, internal policy changes, or cost the organization or company greatly in the form of wasted expense.

Common Audit Problems in Business

Today's businesses are more likely to face the challenges of common quality audit problems.

First, most of the audit processes are inflexible as they lack access to previous audit reports and histories. Those unadaptable audit processes constrain the auditor from fully employing their expertise to reveal additional areas for correction or improvement.

Second, they are mostly paper-based and manually-done audit checklists and reports. As a result, they can be costly, allowing the possibility of human error and often time-wasting.

 Third, they are typically time-consuming, containing excessive (or insufficient) and unnecessary questions and details.

Fourth and finally, they usually do not provide actionable corrections or improvements. 

Solutions for Audit Problems

To solve these problems, consider digitizing the audit process, choosing and using a good audit software app, and using an audit software that supports picture uploading and associating with specific, important questions. This will prevent excessive or insufficient unnecessary data, serve to archive the pictures, and previous editor's findings.

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