Filed under Audit Management and Workpapers.com News

Why do we always send request lists first?

I think we should all change the way we think about request lists. Traditionally, when we have a new audit client, the first thing the audit team rushes to do after signing the engagement letter is send the client a request list for the audit. But why?

Conventional wisdom says it is necessary planning so we can hit the ground running when arriving in the field. Think about this from the client’s perspective though. They immediately get this big list of poorly written requests and are turned off before even meeting the team. I say poorly written because despite best efforts, they almost always are. We are asking for a bunch documentation we usually need but for an environment, culture, process, etc. that we don’t yet understand. The result?

Eight times out of ten, we arrive onsite and the client hasn’t even really started on the request list (likely because they don’t even understand most of what we asked for) So what does the audit team do? Often just sits around until the client starts producing documents.

I suggest a better way.

Lets start the engagement by just letting the client know we need a few minutes to talk with the folks in charge of the areas we’re auditing. Take 15-20 minutes, learn about what they do, get a feel for the culture, and explain to them WHY you need a variety of documentation from them. Now we have a foundation to build on.

With a foundational understanding, go back and craft a gorgeous request list. Sure, there is such a thing… one that is concise, tailored to client systems and processes, uses the same terminology the client uses internally, and most importantly was written then revised for clarity. Sounds like unnecessary work but it is really just appropriate attention to detail and in almost every case enhanced clarity will result in the request items arriving much sooner. Care about the beginning of the audit (the request list) the same way you care about the end (the report).

How Workpapers.com Helps

1. Elegantly crafted request items are individually managed in Workpapers.com. Go through your entire audit plan and create them right from the sidebar of the audit steps so you don’t forget anything (this is IMPORTANT and makes things very efficient).
2. One click email reminders to the contact responsible
3. Once you have a handsome list, invite your client, give them the client access role in the project, and let them go in and easily upload the required documentation.
4. A side benefit of allowing clients access to upload is that the trading documents is 100% encrypted and secured, which receiving them through email definitely is not.
5. When rolling forward project templates or the engagement in future years, all of your request items are automatically rolled-forward and reopened so you can quickly get started collecting them again.

I have been doing a lot of request list management with my clients this way lately. We are continuning to refine the process but overall very effective. Email us or leave comment with questions or tips on how you do it.