With year end approaching, I've been trying to complete the planning on a number of our audit clients. This is the first time I've done so with all of the new auditing standards.
Frankly, there are some parts of it I really like, and some parts of it that really annoy me.
The good: The new auditing standards require the auditor to get a much better understanding of the risks faced by the company being audited. I think this is going to help me better work with these companies. The more I understand these companies the better job I can do and the better advisor I can be.
The bad: There doesn't seem to be a lot of wiggle room. The smallest company I audit is a very small franchisor. This company has maybe two deposits a month and writes maybe three checks a month. I can audit close to 100% of the transactions in 30 minutes. The risks are pretty darn clear. But to have to complete page after page of checklists just seems ridiculous.
Calling it the way I see it.