The world of Auditors is becoming dramatically a competitive cutthroat that lead certification authorities of auditing to differentiate themselves by bringing out few added values. But, today most of the auditors in UAE keep their focal point on compliance rather than exploring real opportunities for improvement. Due to the global financial crisis and succeeding questions regarding the value of financial statement audit, it became mandatory to mold a management system, which can develop distinctive quality innovations for audits. This will demand a turnaround in thinking for auditors, however, it stays as an active opportunity to build added value for clients.
Auditing for innovations!
Innovative audits can lead to successful innovations! For every business to thrive, it needs to innovate. The very first thing that needs to be followed for successful innovation in an audit is to identify the opportunities, which most of the organizations miss out. This is most relevant in tough times,in order to recognize new products that ensure profitability and deliver new services to existing customers rather than searching for new customers. Scrutinizing non conforming products and services by diagnosing propensities of customers are to be carried out sufficiently to input another resource to audit innovations.
Next stage is to tack on to potential solutions by interpreting customer fulfillment and product-wise missteps. Finest data analysis will assist to extract out what failed to get done for customers and what prompted to process failure, availing management a clear-cut idea of where to focus on.
Subsequently, a simple problem-solving methodology can be adapted from amassing composite knowledge, which is a key for connecting to an innovative solution. In case if a business has developed a new product, there is 99% probability that it will have a new supplier and most organizations implement new supplier evaluation through internal audit capabilities.Auditors appraise supplier’s services to comprehend the soundness of suppliers in managing and mollifying any risk, in spite of their quality management systems.
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The astounding need for molding a faster-working solution is that someone else might be working over the same issue at somewhere else. At the final stages, auditors usually forget the exact need for starting innovation, which was obviously to offer perks and value for customers by addressing their concerns and complaints.
The correct pace to innovation
A more common trend among experienced auditors is to accuse that auditing has become a regulated activity and try to dispute for a reaffirmation of professional acumen maintaining a shrewd approach to audits. The surveillance based reviews and control moves fomented by professional audit firms can themselves surpass the number linked with independent public inspections. Besides, the implementation standards and working procedures adapted by most audit firms are more copious and detailed than the standards that are set by authorized bodies such as IAASB. For innovations to succeed, majority rests with the business antecedences that the concerned firms attach to audits and the extent of participation and willingness to work for mutual agendas in setting perfect standards and regulations for future statutory financial audits.
If innovations fail to oversee the claims of existing business model and transit ruling mindsets of staff, it’s assuredly in trouble. In case of any industry that has been alive for years with the conception of an audit expectations gap and the proportional obscurity of good quality audit works, will be favored considerably from a statutorily defined audit function and have defensibly sound economic reasons for sticking on to the status quo.However, the ultimate challenge for innovation is that the auditing professionals needs to deliberately think over whether it has the certainty to revise its business models and to refurbish its traditional delivery and organizational modes regarding the provision of statutory financial audits.
Also Read : Capitalizing from Internal Audits
Sifting from BRA’s experience
The Business Risk Auditing (BRA) experience reveals that the scope for innovative notions is eminently dependent on interplays between drifting professional and regulatory concerns to have a generalized influence on audit practice. In fact, enduring innovations demands eagerness and commitments to improve various aspects of audits.
The bottom line is that innovation has greatest prospects of success if it is merged along with willingness to advance the scope of audit and to welcome the variations in facets of audit delivery, instead of accepting standardization as a legitimate requirement for innovation. The matter is all about exercising culpable professionalism and identifying values in audit beyond its codification, standardization and commoditization.
