4 Challenges Faced By Auditors In Accounting
The main function of an auditor is to evaluate financial statements and ensure that the information presented is accurate. As a result, they require a high analytical aptitude and a critical mind. They also need to be comfortable with handling large amounts of confidential information. Auditors face a variety of challenges. Often, they cannot corroborate confirmations received by mail or fax. In this article, we will discuss some of the most common challenges faced by audit firms in Sharjah.
Issues with accounting and financial reporting processes:
Issues with accounting and financial reporting processes for accountants and auditors may arise for various reasons. These include restrictions on travel, employee illness, and the lack of adequate internal controls. For these reasons, companies need to develop a system of internal control to ensure the accuracy and completeness of their financial statements.
The auditor should also evaluate fraud risks and determine the necessary actions to address them. In addition, the auditor should understand the risk assessment process, the identification of material misstatements by management, and the process used to prepare period-end financial reports. There are also additional considerations for automated and manual systems.
The accounting field is struggling to find qualified staff as turnover is increasing. While most large accounting firms can fill open positions, many smaller firms struggle to find new talent. This problem is a major challenge for small firms as they compete with larger firms for the best accountants.
One way to combat this problem is by increasing career training. A lack of training can result in key teammates leaving the firm. Investing in staff training will prevent these individuals from leaving the company and create a shortage in the staffing pool.
Managing audits as a business-critical initiative:
Managing audits as a business-critical initiative mean integrating audit planning with other key business initiatives. This ensures that audit plans are aligned with the organization’s overall goals. It also helps evaluate the efficiency of the L&D team in terms of speed, agility, and cost efficiency. To make audits more successful, audit teams must also assess how well they capture learner needs and how well their processes align with the organization’s strategic goals.
Cloud-based accounting systems:
One of the challenges auditors face when transitioning from traditional software to cloud-based accounting systems is securing the data stored in the system. Previously, files were saved locally on computers and shared among team members. Eventually, these files would fill up storage space and no longer be useful. Additionally, the downtime they cause could negatively affect the team’s efficiency.