Saturday, May 23, 2015

Auditors' are not infallible - Article from The Edge -

We came across this article in The Edge with the title of Auditors, like anyone else, are not infallible:

What the article said is quite true - where the auditors can't guarantee everything within the company is "all right" even though a clean unqualified audit opinion has been issued. However, the market perception seems to be like the company "is ok" since it has been audited and clean audit opinion has been issued?

WHat can be done to change this market perception ?

Saturday, May 16, 2015

Audit manager and audit partner - EQ - managing emotion or temper

Auditors are subject to tremendous stress, as you are responsible to opine on a set of financial statements, which could be subject to lot of reviews or scrutiny or subject to reliance. A bankers place reliance on the financial statement to evaluate the capability of your audit client to repay, public investor rely on the financial statement to evaluate the investment decision. A audit partner need to carry out the audit in accordance with relevant auditing standard and need to defend on their audit opinion on areas that require significant judgement.

Pressure can cause audit partner and audit manager to have emotionally bad day. A distressed audit partner or audit manager need to watch their communication and interaction with different parties carefully to ensure that the emotion or temper is controlled and surrounding others are not affected.

To illustrate,

Audit partner or audit manager should not whack a subordinate without any reason just because you are having a bad day!

Learn how to control your emotion or attend anger management  class or leave the office immediately if you feel that you going to explode.

Short post but hope the audit partner or audit manager can learn.