More than Just Auditing

What things make difference between normal auditor and valuable auditor? More particularly I am focusing on article called as “More than Just Auditing” because we are leaving in a country which is emerging as a developed country by latest 2020. Now the time has come to create a value addition to all clients by providing not an ordinary service but a valuable service. Creating value addition for client will built a strong economy.

What a management of company wants from an auditor?

·         Raising unnecessary queries…?

·         Doubting accounting all the time?

·         Wasting too much time on resolving immaterial queries???

...The answer of all above is “No”

 The management of company is expecting (over and above normal auditing) from an auditor a report which should cover following areas?

·         How to create an ordinary policy for a company?

·         How to increase a sale of company vis-à-vis margin of company?

·         Areas need to focus on coming years?

·         How to motivate employees of a company?

·         How to invest in particular area for tax planning?

·         Provide comparative financial analysis of company

·         Comparison of company vis-à-vis competitor and industry at large

·         How to prevent a prospect fraud?

The question is how to provide such a valuable services? Here are following some areas which would helpful to prepare a “Management report – called as Insight Report”

·         Through the door analysis – this concept is used by many foreign companies and also by some banks in India. This means an in-depth analysis of company with the help of various reports…examples are given below:

o   Monthly sales MIS with comparison

o   Region wise, Sales Manager wise sales analysis with comparison

o   Product wise sales analysis with comparison

o   Quantity wise sales analysis with comparison

o   Expenditure analysis

o   Other variable analysis

·         Process audit – Business process re-engineering

·         Stock audit on a regular interval

·         Third party confirmation such as receivable audit, supplier audit, bank balance audit etc.

·         Employee feedback

·         Financial report with comparison of ratios and explanation of variances

·         Indus

·         Industry analysis

·         Proposed project feasibility report

·         Updates on tax laws with effect to company on a regular interval by circulating letters

The above list is not an exhaustive list. Surely, this article would help all auditors. Request you all to think and implement the same for better economy.

Regards,

CA Tejas Rupani.

(email: catejasrupani@gmail.com)