18 Sep Essential Guide: Avoiding Common Auditing Mistakes
Ever wondered why some audits seem like a maze of confusion? Through our extensive experience, we’ve identified common pitfalls that many organisations encounter during audits. But don’t worry—we’ve got your back! Here’s our essential guide to navigating and avoiding common audit pitfalls:
Lack of Top Management Prioritisation
Imagine trying to run a marathon without any support or encouragement. That’s the impact of top management not prioritising audits. Their active involvement is essential for a successful audit outcome.
- Ensure top management is committed to the audit process
- Communicate the importance of audits for compliance and business improvement
- Implement security awareness training to reinforce compliance priorities
Insufficient Documentation
Missing documents can turn a smooth audit into a chaotic mess. Section 245 of the Companies Act 2016 and Income Tax Act 1967 requires companies, directors, and managers to maintain accounting and other records for 7 years.
- Keep your records organised and easily accessible
- Implement a robust document management system
- Regularly review and update your documentation processes
Human Error in Manual Processes
Manual processes are particularly prone to mistakes as it is impossible to completely eliminate human error.
- Implement automation systems for user authentication, human resources, and payroll
- Regularly train staff on proper data entry and processing procedures
- Conduct internal reviews to catch errors before the audit
Weak or Missing Risk Assessment
Skipping risk assessments is like ignoring a warning light on your car dashboard. Most audit standards require a risk-based approach to focus controls on reducing material misstatement risks.
- Conduct thorough risk assessments before audits
- Regularly update your risk assessment processes
- Address identified risks promptly and effectively
Internal Assessment is Too Self-Congratulatory
While it’s great to recognise achievements, don’t let it blind you to areas that need improvement.
- Encourage honest and balanced internal assessments
- Seek external perspectives to validate internal findings
- Use constructive criticism as an opportunity for improvement
Misunderstanding the Ongoing Nature of Some Audits
Not all audits are one-time events. Some require regular check-ins to stay on track.
- Identify which audits require ongoing attention
- Implement continuous monitoring processes
- Regularly review and update your audit procedures
Want a Smooth Audit Experience?
Eliminate the stress and let our experts manage the complexities of your audit. Our professional audit services ensure a hassle-free process, with all the details managed expertly. Focus on running your business while ensuring that your audit is conducted efficiently and effectively.
📞 Call us: +6 011 2366 5233
📧 Email: enquiry@kschia.com.my
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