Infrastructure Awards 2018

9 2018 Infrastructure Awards Build must have a purpose and the required knowledge of the processes they are auditing. It is very well checking historical information, but projections going forward with a comprehensive business plan provide valuable information. Make sure your auditors have transparent access to this in order to provide the most objective review possible. 3. Diversify suppliers Often audit firms are large organisations that provide multiple services to one client. Tax advice, ICT consultancy and even marketing communications support are some of the additional services offered by the Big 4. Adding substantial non-audit fees into your professional relationship can seriously impact upon auditor independence. Reduce the auditor’s dependence on you, and preserve their independence, by shopping around for other suppliers. 4. Don’t keep using the same audit firm Finding an external firm that you like can sometimes be a challenge, but it is important to rotate audit contracts so that personal relationships do not hamper auditor independence. By keeping the same audit firm year after year, it is nearly impossible for external auditors to not become conflicted between reporting financial vulnerabilities or failings and the need to maintain relations and contracts. Instead, when an auditor knows that their contract is to be replaced, they become inclined to produce work of an extremely high and independent quality, to avoid the embarrassment of the incoming audit team exposing their errors. Currently the United States is leading the way in ensuring auditor independence. There is a legal requirement on businesses to review audit control procedures every three years, ensuring that external audits are carried out professionally and independently. No such system has been formally implemented in the UK. The Carillion story may see tides turning in the near future. Businesses must ensure they are being provided with the highest quality audit reports. Follow the steps above to avoid the same fate as Carillion. Your reports will be of higher quality and you will secure the future of your business. ACT NOW AND ENSURE INDEPENDENCE