Challenges Faced by Auditor In Developing Countries

7/25/2019 Challenges Faced by Auditor In Developing Countries

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Nepal Engineering College

MSc. Construction Management

Construction Management in Developing Countries

CM 2014

Presentation on

What are the challenges faced by a project auditor in developing countri

practical ays to tac!le the"# $%plain ith specific e%a"ples#

Presented &y'

&haesh Mandal

(oll )o# 0*+ CM ,,, Se"#

)epal $ngineering College


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,ntroduction

Auditors play a critical role in any Organization/Project

!ere are some c!allenges t!at "e s!ould understand t!at #acing today$s auditors in p

services to t!e client so as to esta%lis! a &uality audit report


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-ypical Stages in .udit Process

Source'

http'++sitefinie+audit+hat/


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Challenges faced by a Project .uditor

Preparation f ,nfor"ation ocu"entation

Clients provide insu##icient in#ormation t!at re&uired %y auditors

'n#ormation overload ( too muc! in#ormation and lost in %et"een)


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Co""unication &eteen .uditors Clients

Auditee/Sta## at t!e client$s o##ice did not "ant to

cooperate "it! t!e auditors

!e client$s Auditee/sta## are lac* o# understanding o# t!eo%jectives o# auditing

Psyc!ological (+ear and P!o%ia)

'ntellectual (,no"ledge and S*ills o# Auditee)Source-!ttp-//""".#reee%oo*s.com/#a&pm/&ual


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efinitive Standards that are 3ard -o nderstand

ec!nical "ords regarding to Client$s %usiness operation sometimes !ard to und

%y auditors.

Delaying o# auditors$ "or*s

1ess time can %e spend on more critical aspects o# t!e client$s #inancial statement


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.voiding -raps

Misleading ,nfor"ation 5 6a!e or -

nderstanding e%act e%pectation of 8


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9eographic (each f -he Clients ffice

Client$s o##ice are situated #ar #rom t!e auditors$ o##ice (to reac! #or documents 2 o

in#ormation)

Auditors need to incur more costs not only #or t!e transportation3 %ut also #or t!e "

(papers3 printing3 p!one calls etc)

4earing t!e ris* o# late payment %y t!e clients


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What does Audits Provide ?

Source' !ttp-//""".#reemanagemente%oo*s.com/#a&pm/&uality0.!tm


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3o it can be Solved

,"prove .udit :uality

4y #ocusing on clients t!at value audits3 audit #irm can "or* on improving t!e audit &

Auditors need to %e "illing to e5ercise more judgment in assessing areas o# %usiness Auditors !ave to c!ange t!eir mindset 6 not to only #ocus at costcutting


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3o it can be Solved

(efocus n -he .uditor;s Professional (esponsibility

4ecause o# #inancial c!allenges in auditing pro#ession3 auditors !ave recast t!eir rovalue for the client$ neglecting t!eir pro#essional responsi%ility

Auditors need to #las!%ac* "!y t!ey "ere granted a statutory mandate #or per#orminclients

Create a culture in t!eir #irms t!at recognizes t!is cele%rate


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3o it can be Solved

,"prove -heir .udit Planning Strategy

Auditors need to !ave an e##icient 2 e##ective audit strategy

Al"ays ma*e early preparation

Ma*e sure t!ey al"ays o%tain preliminary *no"ledge o# t!e industry o# t!e entity to %

Emp!asized on payment met!od t!at can encourage t!eir client to ma*e payment soo


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Conclusion

8ive opportunity #or ot!ers to t!in* a%out t!e c!allenges #aced %y audi

today

Auditors must #ind t!e appropriate "ays to overcome t!ose c!allenges

ris* %ared 2 to improve t!e &uality o# t!eir audit "or*s)


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-3$ $).ny Co""ents+ :uestions ?

Documents

Challenges Faced by Auditor In Developing Countries