How do you ensure transparency and accuracy in financial reporting when working with auditors?

This is a digital era. In order to ensure transparency and accuracy, a read only access (including download feature) to the ERP system for financial and share point for non financial information would allow the auditors to do the following. 1. Information extraction without any user intervention thereby minimizing data manipulation; 2. Virtual verification of supporting documents avoiding dependency on the user to delay the audit process; 3. Observation of transactional access controls and verification of maker checker in ERP; 4. Verification of change management in the ERP; and 5. Objective validation of information linked to the financial reports.

To ensure transparency and accuracy in financial reporting with auditors, I maintain open communication, provide clear and well-documented records, and proactively address any discrepancies. This collaborative approach builds trust and ensures that the disc are accurate and reliable.

Para garantizar la transparencia y precisión de los informes financieros al trabajar con auditores, es esencial mantener una comunicación abierta y continua. Proporciona a los auditores acceso completo a los registros financieros y asegura que toda la documentación esté actualizada y organizada. Implementa controles internos rigurosos y realiza revisiones periódicas para identificar y corregir posibles errores antes de la auditoría. Establece un canal de retroalimentación para resolver dudas y discrepancias de manera oportuna. Fomentar una cultura de integridad en la empresa, donde la precisión financiera sea una prioridad compartida.

Keep thorough records of all financial transactions, supporting documents, and internal controls. Adhere to Standards by Following the generally accepted accounting principles or International Financial Reporting Standards. Implement Strong Internal Controls by Establishing robust internal controls to prevent errors and fraud. Communicate Clearly by fostering open communication with auditors. Staying transparent about processes, changes in accounting policies, or significant transactions. Perform internal audits before the external audit. Ensure that all relevant staff are trained in accounting principles and company policies. Stay up-to-date with changes in accounting standards and regulatory requirements.

In my experience, I’ve learned how important is to have team reviews of the important outcomes from the controls that need to be in place. As leader you can set up quarterly team reviews and one on one follow ups when required. This should become part of the culture, valuing discipline. As leader you set the tone.This will make it easier for when auditors arrive. Ensure to highlight and recognize discipline to reinforce the value in the company culture.

The foundation of sound financial reporting rests on effective internal controls. I've prioritized developing a comprehensive framework that includes: Segregation of Duties: By dividing responsibilities, we reduce the risk of errors or fraud and create a system of checks and balances. Authorization Protocols: Establishing clear approval hierarchies ensures transactions are reviewed and authorized by appropriate personnel, adding an extra layer of scrutiny. Reconciliation Processes: Regular account reconciliation helps identify discrepancies early, allowing for timely corrections, ensuring accuracy, and enhancing data reliability.

“Come in and knock yourself out.” Is the classic phrase to use when there’s nothing to hide and all is transparent and available. Nothing stresses management like an audit; ESPECIALLY an on-site one. Being accommodating and open and friendly can often make or break the final verdict, regardless of the veracity of the documents. A huge amount of how things go is discretionary, and being perceived as evasive or uncooperative is — it needs to be said— the wrong thing to do. Whether it’s producing documents in quick fashion, granting access to UI’s to get info, or simply making sure there’s coffee available and a comfortable place to work……communication is #1

I preach Accuracy alot, and in addition to the above, to ensure transparency and accuracy in financial reporting when working with auditors, it's crucial that every team member understands the importance of precision in financial information. By emphasizing the value of accurate data, we ensure that all necessary and relevant information is readily available to auditors.

While you are trying to achieve your organisational goals, sometimes you take short cuts to meet teh end result. But even in such scenarios, there is always a logical reason to move towards the shorter path. I suggest that one should always document these reasons and have alignment of right decision making authority so that you can help the auditors to make your logic understand.

Continuous review is essential for maintaining the integrity of financial reporting. After going through an audit, it's crucial to evaluate and update financial processes to address any identified weaknesses and adapt to evolving business environments. By consistently reviewing internal controls, organizations can proactively identify and rectify inefficiencies, ensuring accuracy and transparency. Ongoing training for finance teams is vital to keep them informed about industry best practices and technological advancements, further supporting robust and reliable financial reporting.