Importance of Transparency During an Audit

Trust defines the basis of everything during an audit, be it for the auditor or for the account holder. Transparency is one of the key ways to build trust. Transparency ensures compliance with procedures, accuracy and a proper process in place. It results in a more accurate audit as every party involved is accountable in the audit process.

Auditors are ‘gatekeepers’ and have a critical role in ensuring that Australian investors can be confident and informed. High-quality audits promote confident and informed investors creating an efficient market.

Transparency during an audit gives rise to the following values in an organisation:

Teamwork
When you work as a team you know details about each others work, it helps when an annual audit is conducted. If an auditor is reviewing, it gives him a better chance to find unusual count or price entries because exceptions are listed separately on reports.

Honesty
When you know someone is watching or observing, there are fewer chances of being caught in dishonesty. When work is review-able it reduces the possibilities of slacking in keeping accounts, cutting corners or stealing. Trustees are more honest when there is transparency in the process of things.

Real-time reviews
When an auditor Single keystrokes of the audit can be reviewed before the team leaves the store location.

Checks and balances
It assures that corporate offices have the opportunity to review every detail after an audit is completed.

Transparency audit quality may encourage audit firms to increase their focus on audit quality while providing information to assist those responsible for selecting an audit firm.

It is important to choose your auditor wisely as it determines the position of your SMSF on an annual time-line. Have our experts guide you on anything you need to know with regards to an SMSF audit, write to us at SMSFaudit@dhan.com.au or call us on 1300 707 325