The Auditor Is Coming: When, Why, and How to Cope

Abstract

In a survey by the magazine Fast Company (www.fastcompany.com), 82% of all executives questioned admitted that they sometimes did not observe the rules of fair play when playing golf. Whilst this mostly goes unnoticed on the golf course and has no serious consequences, in financial reporting, not observing the rules is quite a different matter. Room for interpretation stretched beyond limits, accounting creativity bordering on criminality, or even falsified financial statements can (justifiably, of course) have serious consequences: an adverse opinion from the auditor, the negative effects on the granting of credit to or the creditworthiness of the organization, or penal consequences.

The visit to the dentist, the appointment with the authorities, or a visit to the mother-in-law – sometimes you just can't avoid uncomfortable encounters. Afterwards they're usually nowhere near as bad as you expected, and you can even benefit from them.