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Making Assumptions

One of the things that can kill the effectiveness and efficiency of an audit engagement is making assumptions.  While they seem to save time at first, assumptions — if they turn out to be incorrect — can be quite harmful to an engagement.  Oftentimes, assumptions are made concerning the client, your staff, and how the audit will progress.  Some of the more common assumptions are as follows:

  1. The client will actually be ready on time.
  2. The staff professionals will be able to perform at a level that you will need them to perform, and detailed instructions will not be needed because the staff has been part of the firm for a year — despite the fact that this is a new industry for them.
  3. The client actually got the email that you sent and is vigorously working on putting together the requested schedules.
  4. The review will happen in the field as planned.
  5. There have been no changes in the general operations of the client.
  6. It is impossible to obtain data in an electronic form.
  7. The client personnel you will be working with will be knowledgeable, competent and available to you.
  8. The world of your client revolves around you for as many days as you are on-site during fieldwork.
  9. The time budgeted to perform the audit is sufficient, because there will be no major issues or roadblocks, and the budget was prepared properly.
  10. The files (whether electronic or hard copy) that you will need to complete the audit will look the same as in prior years, be stored in the same place and work the same way.

Yet another key to performing an audit in an effective and efficient manner is simply to take some time at the beginning of the engagement or, better yet, at the end of the prior year engagement and identify — perhaps with the client — ways in which the process could go smoother in the following year.

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