This article reflects the opinions of its author and not necessarily those of ShareSoc.
This is the first post from a new contributor to ShareSoc’s blog: “The Secret Auditor”. We hope that we can coax them to contribute more of their wisdom in the future.
Why Problems With Audits Arise Repeatedly
The fundamental problem of audit quality remains, the work is carried out by bright individuals fresh from university, they haven’t been in industry for decades and seen what goes on, they haven’t had the experience and gravitas to be able to confront senior management.
What is needed is experienced personnel on the front line who are sceptical; who ask searching questions and refuse to accept bland answers.
That is unlikely to happen as no one wants to rock the boat, the Big Four make lots of money, companies get away with a lot, the only people to suffer are the shareholders and they are unable to complain about the quality of the audit because they have no legal recourse.
As a stop gap attempt to force change, I recommend that details of the audit teams are given: hours worked, years of experience. That would highlight that 90% of the work is carried out by trainees or newly qualified staff. There would be a furore about the NHS if 90% of the operations and life-death decisions made in hospitals were carried out by individuals who are still working their way to a qualification.
The Secret Auditor
