Question

Culture audits are an emerging engagement. E&Y is one of the leaders in this initiative. what a cultural audit is and provide me with information on what is the intent of a cultural audit, how will it impact a review of a corporation, is it tied to ethics (why or why not) and does it help with the financial statement audit and the development of a audit plan?

Thank you

Answer 1

Meaning: Culture audit typically involves examination of the documents of the official culture i.e corporate histories, findings from internal and external studies, and standard sources of data on financial performance.

The phases of an audit are selecting an audit instrument or tool, collecting data, analyzing data, and preparing recommendations for change. The heart of an audit, however, is to uncover values and beliefs through interviews, focus groups, surveys, and direct observations of people.

Cultural audits examine current practices, programs and processes to identify how culturally appropriate they may be for multi-cultural or global audiences. They enable the global organization to align business processes with desired outcomes.

The intention of Cultural Audit:

1. Identify areas in business practices for improving cultural sensitivity. It clearly identifies challenges and opportunities, establishes a baseline, analyzes the gaps, and directs the organization toward cost-effective initiatives.

2. To build employees' loyalty and enhance their productivity, increase the client base adherence, and attract more new clients - thus driving the company's overall competitive advantage.

3. Prevent the erosion of internal and external relationships needed to achieve high performance.

It impacts a review of a corporation based on cultural values and ethical practices.

It helps with the financial statement audit and the development of an audit plan in formulating organizational mission, vision, and values