{"id":126339,"date":"2024-07-01t11:56:10","date_gmt":"2024-07-01t15:56:10","guid":{"rendered":"\/\/www.g005e.com\/?p=126339"},"modified":"2024-08-29t23:52:56","modified_gmt":"2024-08-30t03:52:56","slug":"use-eight-audit-exit-items-to-deepen-client-relationships","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/07\/01\/use-eight-audit-exit-items-to-deepen-client-relationships\/","title":{"rendered":"use eight audit exit items to deepen client relationships"},"content":{"rendered":"
<\/strong><\/p>\n developing a deep understanding of an industry is a surefire way to make your audits more relevant.<\/strong><\/p>\n by alan anderson, cpa making the audit relevant doesn\u2019t stop when the audit report is signed. to demonstrate your value and stand out from the competition, deepen the relationship with the client.<\/p>\n <\/p>\n far too often, the exit conference is a wasted opportunity to demonstrate the relevance of the audit. that\u2019s 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\u2019s a basic outline of the information to be covered:<\/p>\n <\/p>\n to stimulate discussion, present the information as bullet points, not paragraphs. this way, the information is conveyed in a conversation rather than by reading.<\/p>\n incorporating a culture of relevance at your firm doesn\u2019t stop with your processes and systems for completing an audit. you also build relevance through your choices of the kinds of clients your firm works with, and by providing those clients with the kinds of services they need when they need them.<\/p>\n demonstrate relevance by specializing nothing drives commoditization more than trying to be all things to all people. now, smaller firms might argue that they don\u2019t need to specialize because they\u2019re not working with terribly complex businesses, but they can work with every kind of small business that comes their way. \u201cjust give me a balance sheet, and i can audit anything,\u201d they say. twenty years ago, that was a common belief, but even back then, that was a fallacy. today, as businesses become more and more complex, it\u2019s absurd even to think that.<\/p>\n some may say that if a firm audits small organizations \u2013 which may only have a couple million in revenues or less \u2013 you can get away without an industry specialization. and it\u2019s true that you can certainly accomplish the compliance function for these smaller entities. you can get them an audited set of financials with the appropriate opinion.<\/p>\n yet, the likelihood of your ability to bring relevance to that client concerning their business activity is much lower. you might be able to give them some pointers on making their back-office accounting more efficient. but they\u2019ll likely be more interested in your understanding of sourcing material for their manufacturing operation differently. or how to staff their restaurant adequately. these kinds of high-level, industry-specific insights are absolutely invaluable to these small clients.<\/p>\n you can only provide these insights if you have an industry specialization. developing a deep understanding of the industry is a surefire way to make your audits more relevant.<\/p>\n i always remind people when they\u2019re doing work for nonprofit organizations that not-for-profit is a tax structure, not a business purpose or industry. all businesses need revenue to carry out their business purpose, whatever that might be. that business purpose might be different for a nonprofit because it\u2019s not operating to build personal wealth but to fulfill a mission that serves the greater good. regardless of the business purpose, a business needs revenue to fulfill that purpose.<\/p>\n when you understand your clients and are committed to providing relevance, it\u2019s easy to see what services would be helpful for them. for example, cash flows kept clients up at night in the covid-19 era. this was not a new need, but it became urgent. so, it should be a slam-dunk for auditors to help them with this.<\/p>\n there are tools out there that clients can plug into their general ledgers, add a few parameters for how their business model works, and have a dynamic cash flow projection. some people will want something that updates in real time, while others only need a monthly update a few weeks before they pay their bills. you can even build a monitoring bot that alerts when it looks like cash flow will be a problem. this may sound like science fiction to some auditors, but that technology is available today.<\/p>\n none of these ideas for adding relevance require additional equipment or extraordinary investments beyond taking additional time to ask questions and think about what those questions reveal. while it\u2019s true that this extra inquiry will require more time and that additional time will have to be baked into the schedule, the benefits far outweigh the costs. remember that completing endless checklists also takes more time but adds little relevance to the audit.<\/p>\n","protected":false},"excerpt":{"rendered":" developing a deep understanding of an industry is a surefire way to make your audits more relevant.<\/strong>
\ntransforming audit for the future<\/a><\/em><\/p>\nmore:\u00a0<\/b>exceptional audit client service demands effective communication<\/a> | deliver more audit value by getting out of the conference room<\/a> | six essential elements in audit planning<\/a> | before the audit: more than just planning<\/a> | five crucial attributes for successful audit leadership<\/a> | put the ethics code to work for your clients and your firm<\/a> | is audit in crisis because of definitions?<\/a>
\nexclusively for pro members. <\/span>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/h4>\n\n
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\nby alan anderson, cpa
\ntransforming audit for the future<\/a><\/em><\/p>\n","protected":false},"author":5075,"featured_media":126342,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3925,3120,3002],"tags":[4086,4026,2394,4149],"class_list":["post-126339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-assurance","category-pro-member-exclusive","category-special","tag-alan-anderson","tag-anderson","tag-audit","tag-audit-relevance"],"acf":[],"yoast_head":"\n