Ben’s Video Tip of the Week: An Auditor’s Job
An auditor’s job is your job — a financial audit isn’t designed to fix your mistakes, just to ensure you haven’t made any. Watch now:
Video transcript available below:
Good morning. I’m thinking about audits today, financial audits, because I just had a meeting with our largest client’s independent accountant for their audit for the year that just ended.
The one thing I always think about is that I hear from people on Boards I serve on and otherwise who think that an auditor’s job is to come in and to fix the books, to make entries that you didn’t make, to correct things. We think that auditors are there to verify the books and to make sure that all the things that have been accounted for, have been accounted for correctly. That process requires that we have a detailed analysis of the balance sheet and generally to make sure that where things should go on the income statement have gone.
I don’t want to tempt the evil eye, but I’ m proud to say that for six years in a row for this client, there hasn’t been an adjusting auditor entry. And I think that’s just normal practice and everyone should shoot for that.
If you’re still having issues where your auditors come in and make adjusting entries, you may want to talk to them or certainly, you can call me. I’d be happy to chat about it.
Good luck! Work on your business. Stay in touch.