alan anderson

how ‘business expert cpas’ get their own business wrong

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only a small percentage of audit leaders understand businessmindedness’s inward and outward components.

by alan anderson, cpa
transforming audit for the future

i talk to leaders of firms all around the country who think that if they get their fee realization right, that’s a sign that they’ve got great business minds. they ask me what the market fee realization is, so i tell them that’s a miserable measure.

more: say adios to audit fee pressure | eight items to cover in the audit exit to deepen client relationships and prove value | know your three audit w’s | planning lays the foundation of audit relevance | how do we drive relevance in audit? | before the audit: more than just planning | are you correctly identifying the relevance intersection? | lack of relevance drives audit commoditization | five crucial attributes for successful audit leadership | traditional audits don’t deserve premium billing | four basic understandings every auditor must master
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

there is no perfect fee realization. as extreme examples, i’ve worked with firms with 10 percent and 200 percent fee realizations. which is better? neither. the firm with a 10 percent fee realization bills at $5,000 per hour, while the other bills at $20 an hour.

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say adios to audit fee pressure

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what client goes out for an audit proposal when their auditor provides relevant advice and useful suggestions?  

by alan anderson, cpa
transforming audit for the future

your client likely engaged your firm for an audit because they need an audit. but what is it that they want? they don’t want a stack of paper delivered months after year-end. like anyone else, they focus on “what’s in it for me?” or wiifm.

more: use eight audit exit items to deepen client relationships | exceptional audit client service demands effective communication | deliver more audit value by getting out of the conference room | know your three audit w’s | planning lays the foundation of audit relevance | how do we drive relevance in audit? | before the audit: more than just planning | are you correctly identifying the relevance intersection? | lack of relevance drives audit commoditization | five crucial attributes for successful audit leadership | traditional audits don’t deserve premium billing
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

they want relevant ideas that will help them improve their businesses. they want to learn from you about your experience with others in their industry or in a similar situation. they want a relationship with you to talk about their business in plain english. they want someone who can explain the accounting standards and how they impact how they report their results.

remember our definition of relevance:

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use eight audit exit items to deepen client relationships

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developing a deep understanding of an industry is a surefire way to make your audits more relevant.

by alan anderson, cpa
transforming audit for the future

making the audit relevant doesn’t stop when the audit report is signed. to demonstrate your value and stand out from the competition, deepen the relationship with the client.

more: exceptional audit client service demands effective communication | deliver more audit value by getting out of the conference room | six essential elements in audit planning | before the audit: more than just planning | five crucial attributes for successful audit leadership | put the ethics code to work for your clients and your firm | is audit in crisis because of definitions?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

far too often, the exit conference is a wasted opportunity to demonstrate the relevance of the audit. that’s why i recommend that a standard powerpoint presentation be used to discuss the audit. this will include the required communications and ideas for business improvement and will be designed to facilitate open-ended, two-way communication. here’s a basic outline of the information to be covered:

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exceptional audit client service demands effective communication

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drop the devices and go talk with clients.

by alan anderson, cpa
transforming audit for the future

most firms have guidelines for turnaround time and response times but stop there when it comes to delivering excellent customer service. does your firm have a definition of what superior client service might mean in an audit?

more: deliver more audit value by getting out of the conference room | know your three audit w’s | planning lays the foundation of audit relevance | are you correctly identifying the relevance intersection? | traditional audits don’t deserve premium billing | turning audit & accounting into assurance & advisory | stop sending the wrong message to audit teams
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

remember that relevance is the intersection of what your client wants, what you think is important and what the stakeholders need. providing superior client service is definitely contained within that intersection.

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deliver more audit value by getting out of the conference room

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create deeper audit relevance by diving into your client’s business … in the actual business.

by alan anderson, cpa
transforming audit for the future

once your team understands the critical role planning plays in creating a foundation for audits and how that enables your team to have the mental bandwidth to deliver relevance, it’s time to focus on other ways to develop a relevance culture in your firm.

more: know your three audit w’s | five ways to prevent audit bottlenecks | how do we drive relevance in audit? | lack of relevance drives audit commoditization | four basic understandings every auditor must master | wanted: great audit mentors | closing the audit expectations gap
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

at the planning stage, set out the expectation that everyone will add value to the audit by identifying areas where the client can improve. one way to do this is to assign each audit team member the task of interviewing someone outside of accounting who has something to do with their audit area. have your team members ask this person these five questions and write up a summary of what they learned:

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five ways to prevent audit bottlenecks

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keep your audit team flowing smoothly. 

by alan anderson, cpa
transforming audit for the future

your team must take a proactive, anticipatory approach to completing an audit in the field. think about the bottlenecks you faced last year with this same client and the bottlenecks that seem to happen with every client.

more: planning lays the foundation of audit relevance | how do we drive relevance in audit? | lack of relevance drives audit commoditization | four basic understandings every auditor must master | wanted: great audit mentors | closing the audit expectations gap
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

sit down with your team and have open-ended conversations about actions to take to reduce or eliminate those bottlenecks. here are some ideas for preventing problems:

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before the audit: more than just checklists

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effective inquiry starts with knowing how to ask the right questions.

by alan anderson, cpa
transforming audit for the future

to weave relevance into the fabric of your firm culture, your team must shift from just getting the work done, with relevance as an afterthought, to putting the client at the center of the audit. that starts by building a foundation with the four u’s of understanding your client, the industry, the standards and how to audit.

more: are you correctly identifying the relevance intersection? | lack of relevance drives audit commoditization | five crucial attributes for successful audit leadership | traditional audits don’t deserve premium billing | four basic understandings every auditor must master | put the ethics code to work for your clients and your firm | turning audit & accounting into assurance & advisory | wanted: great audit mentors | is audit in crisis because of definitions? | stop sending the wrong message to audit teams | closing the audit expectations gap
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

to master these, you first need a natural sense of curiosity. out of curiosity comes inquiry. we’ve all been taught that inquiry is one of the fundamental components of the audit process. but too often, inquiry doesn’t go any further than getting some answers to the questions on a checklist. and too often, those questions are the same ones that get asked at every audit engagement. the client has probably heard them (and answered them) more times than you can imagine.

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