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Oct 12, 2016
SkillPath Staff
If you’re like most professionals charged with the enormous responsibility of safeguarding your organization’s financial security, you already fully understand the importance of your role.
Every day you strive to protect, control and maintain your organization’s financial health while doing everything you can think of to increase your levels of security and accountability.
You understand that a solid internal control system is essential for sound financial management. You also realize that if there are holes in your internal control structure, you and your organization could face damaging consequences—from a breach in security to severe regulatory violations. So you’ve taken every step you can prevent this from happening.
BUT… no matter how well you prepare and protect yourself, an audit is still a stressful and nerve-wracking experience. Here are the steps you should take when the government comes knocking at your door.
Be prepared
When you receive notice that a state is planning to audit, do the following:
Establish the ground rules
Tell auditors:
Prepare for meetings
When the auditor wants to have a meeting:
Control the meeting
Keep the meeting short with these techniques:
Handle negotiations
1. When an auditor requests copies, use the opportunity to get an update of the proposed assessments since the last time you two talked
2. If there are issues, research them and provide the auditor with your positions of exemption, etc.
3. Maintain professional courtesy (Expect competence, sincerity, and integrity, and give the same in return.)
4. Provide the auditor with a work space close to you and keep an eye on his or her activities (Make the space reasonable, but not overly comfortable.)
5. Spend enough time with the auditor to understand his or her personality and agenda
6. Focus on what he or she finds important
7. Answer questions succinctly—as if you were on a witness stand
8. Never offer information that is not requested
9. Listen carefully and answer slowly after considering the auditor’s agenda
10. If you don’t feel comfortable answering a question, answer a different question
Judicial review
SkillPath Staff
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