Thursday, August 16, 2007

Reflecting on 23 years of auditing

Ok, the title is a bit of a misnomer. I started at Deloitte in September 1984, and that is almost 23 years ago. But then I spent 6 years out public accounting, so maybe 17 years is more appropriate.

I am the lucky beneficiary of some friends of are partners in another Detroit area firm. They found themselves "not independent" on one of their audit clients and asked me to do the audit. The audit right now is in process and the people are nice.

A bonus of this situation is that the staff person from my friend's firm is someone I worked with at a previous firm. We were comparing notes about how much audits have changed.

I remember the first time I wrote an audit planning memo - it was 1 1/2 pages long. The next year it was 4 pages. And this was on a $100 million revenue publicly traded company. I bet that when I count the pages related to planning this new audit, which is a considerably smaller company, that it is in excess of 50 - checklists, forms, processing descriptions.

In early October, I will be going to a two-day conference in Las Vegas for training on the a series of new auditing standards that dramatically changes the planning and performance of an audit. I'm betting that if I do this same audit again next year, that the planning section will be even longer.

No comments: