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Cooperation of management boards and auditors

Monika SKÓRKA
statutory auditor, Audit Partner at RSM Poland

How do management boards work with auditors? Do managements boards willing or reluctantly cooperate with auditors? What are the most difficult situations faced by auditors when working with audited companies?

 

A few years ago, an audit was treated as a necessary evil and another obligation to comply with. Nowadays, auditors are increasingly considered to be advisors, whose knowledge and experience can support the company's operations. I have often encountered situations where the company management shared their business problems with the auditor. It is only a relationship based on openness and trust, as well as the treatment of the auditor as a business partner that can have a positive impact on both the cooperation itself and the condition of the audited company. Sweeping problems under the carpet will not bring the company any added value.

Difficult situations faced by auditors include, on one hand, the complexity of tasks they have to face and, on the other hand, the process of selecting the auditing company. An audit is not only about verification of historical financial data. It also means control and evaluation of the management board's activities to ensure the transparency and reliability of financial reporting, which forms the basis for business decisions. Unfortunately, the fact that the management board exercises a determining influence on the selection of the entity to audit financial statements casts a shadow on the relations between companies and auditors.