Auditing can extend to cover more areas than finance, like performance management, risk assessment, performance audits and internal control.
We spoke to some auditors in Egypt, and here are some of the major challenges they face in auditing in different industries especially when reviewing and analyzing the details of the financial records, particularly with respect to laws and accounting standards:
Top Challenges Faced By Auditors
1. Non- cooperation of the Organization (managers or employees)
Auditing is an accurate and complex job that requires close attention to every single detail. However, clients often do not operate with the same rigor.
If the organization you audit does not understand the importance and scope of the audit and does not provide you with enough and accurate information, then it becomes difficult for you to successfully and adequately complete the audit processes
In some cases, the lack of audit evidence (too weak or inaccurate) makes it not an easy task for the auditor to take the right decision or to produce accurate results.
2. Fraud
Fraud risk is the risk that financial statements have material misstatement without detection by both auditor and management.
A fraud audit is actually a consulting service rather than a type of audit, since this procedure is more detailed than a normal audit as the outcome does not involve giving an opinion on financial statements.
3- Inventory Inaccuracy
- Most inventory inaccuracy are caused by human error or flaws in inventory control procedures, product damage, misidentification and lack of cycle counting.
- The lack of accuracy can be costly in terms of money and time.
4. Technology
Once a new technology rolls over you, if you are not part of the steamroller, you are part of the road.
There has been an explosive use of advanced technology in different types of industries; audit firms that do not use technology in the long-term will be less competitive.
5- Professional Auditors
The industry has found it difficult to find young people willing to dedicate their careers to accounting and auditing. The difficulty in attracting talent to internal audit and the difficulty to retain them is one of the auditors’ top challenges.
Auditors are more stressed out than ever before, Clients are investing more in automated programs and systems. Auditors must now not only audit the output but also evaluate these systems for control and accuracy purposes.
Overcoming Your Audit Challenges with the Right Audit Firm in Egypt
Ahmed Mamdouh & Co. Kreston Egypt ensures your organization is able to stay connected internally and externally, with the preservation of the confidentiality of each client's data.
All of our services are built on our values; we provide quality and trustworthy audits of our clients’ financial statements, business operation reports and practices. We keep a transparent relationship with our clients so we give advice to our clients to help them secure their growth and business sustainability with efficient financial operations and business transactions.
Our network of auditors in Egypt or abroad are aware that it is our responsibility to identify and record any fraudulent activities. Therefore, we offer fraud training for all audit professionals.
Reducing Fraud Risk through managing all your accounting processes through one accountant can be overwhelming and put your business at fraud risk, rather than giving it to the professionals.
We use additional internal and external data and information to enable more nimble responses to external risk indicators. Moreover, We use electronic confirmations for audit evidence, wherever possible.
We provide our bookkeeping services remotely through state-of-the-art cloud bookkeeping solutions. This allows us to communicate and exchange data and insights with our clients anywhere at any time, no matter where they are. However, we can also provide bookkeeping experts to work with your team onsite, when required.
Auditors must be aware of cybersecurity, cybercrime. We are keen on blending technology in auditing tools and increasing data usage in accounting operations. Our team at Ahmed Mamdouh & Co. Kreston Egypt undergo appropriate training to be updated and keep up with all that is new in the audit field.
Do not hesitate to contact Ahmed Mamdouh & Co. Kreston Egypt; we consider ourselves a business partner to our clients, ensuring we are always available and responsive when needed to help decision-makers make well-informed decisions.
