In previous columns here, I’ve often talked about how to handle difficult accounting issues. I have not, however, talked about how to handle auditor issues. It’s time that I do.
Working effectively with your external auditors when accounting questions arise is important not just because the auditor needs to opine on the financial statements, but also because auditors generally have knowledge and experience that, if used correctly, can lead to a more efficient and effective resolution. Unfortunately, my anecdotal evidence suggests that in many cases, when tough issues come up, the client-auditor dynamic doesn’t work as well as everybody would like. ...