Question

Brand new auditors can be a problem and something that can slow the process down. Is there any disadvantage to having the same auditors every year?

Answer 1

Barnd new auditors may not be always problem to the company.

If the new auditors are appointed to the company there may be chance to slow down the work because as follows :-

1. The auditor have to gain knowledge about the bussiness.

2. The auditor has to get a seperate plan to the new client and it may take some time.

3. The auditor has to train there team to get the work accurately.

4. The auditors has to habituated to the bussiness of client to get deep knowledge about the bussiness of client.

The disadvantage of having same auditors every year.

1. Year by year the auditors may get compromised with there independence of audit.

2. The auditors will leave major areas that they feel minor areas or non material things.

3. By analysing all areas in the year of audit they feel some area are minor and that areas may become more material in the future years.

4. Same auditors for every year will make the client more liberal about the scope of audit and there are more chances of the making a fraud.

5. There may be a chance of collusion between the auditor and client .

These are all the points about the above question.

I hope, all the above mentioned points are useful to you.

Thank you.