It’s everyone’s favorite time of year!
No. Not Christmas. Not Hanukkah. Not New Years.
It’s audit time! And for some, ‘tis the season for AUDIT NIGHTMARES like these …
1) Disjointed Reporting and Data – Does this sound familiar? Someone you know (not you, of course) has cobbled together information from a variety of disparate sources and systems, and dumped it all into an Excel spreadsheet.
2) Inconsistent Reporting and Data – The kissing cousin to nightmare number 1, an organization’s inability to accurately and consistently produce financial statements and reports that are the same EVERY time is a big problem. (HINT: If you and your organization can’t consistently duplicate your results, neither can your auditor.)
3) Inconsistent Overhead Methodologies and Corrected Journal Entries –Your “creative” colleague decided to change the basis for calculation of a standard allocation four times this year AND reclassified all those expenses – twice. It seemed like a good idea at the time …
4) Internal Control Deficiencies – How the heck did that intern get access to payroll information, and why is it published on Facebook? Words that you don’t EVER want to hear uttered.
5) Improper Internal Processes – Does anyone know who approved this all-expenses paid trip to Hawaii for Charlie? Oh, Charlie did. Oftentimes organizations have proper workflow processes in place, but just aren’t executing them well, or are dealing with insufficient supporting documentation.
Nightmares like these can have a HUGE (negative) impact on your organization. Find out what you can do to avoid them. Download our Five Audit Nightmares You Want to Avoid whitepaper now.
What’s keeping you up this audit season? Tell us in the Comment field below.