Essays on Developing Business Acumen and Client and Industry Knowledge Assignment

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Finally, the dialogue also discusses client knowledge that entails the specific understanding of the characteristics, risks, and issues influencing the operations of the client. The motivation behind the selection of the topic emanated from the fact that there have been several incidences where clients opine that the auditors assigned to conduct an audit on their financial statements and other records do not have an in-depth understanding of the business. As a result, clients believe that the auditors that do not have sufficient knowledge regarding their business will be unable to carry out effective audits.

Junior auditors have exhibited reluctance towards understanding the client’ s business prior to embarking on the audit exercise. It is also worth noting that senior or experienced clients have a better understanding of the client’ s business. The next section entails the actual dialogue that introduces the issue to the audience. The first scene entails a conversation between a client representing the client organization and a junior auditor. The second scene presents the dialogue between the junior auditor and the senior auditor. Finally, the third scene presents the final dialogue between the junior auditor and the client. Transcription Scene 1: Client and Auditor Junior Client: Good morning… I am Mr.

XXX, an employee at XXX Organization. I would like to about the auditing services offered by your company. Auditor Junior: Good morning too… I am Mrs. XXX working in this auditing firm. Just to confirm, had your company placed an appointment with our firm? Client: Yes, the appointment is scheduled today at 11 am. Auditor junior: Just a minute (he checks the records)… Ok. I have confirmed that your company had indeed placed an appointment for the inquiry of auditing services with our firm.

Thank you for calling to confirm the appointment. I want to assure you that our company will deliver the best auditing services to your company. I am sure that at the end of the exercise, the credibility of your company’ s statements will be restored. Client: To be precise, we are approaching the end of the financial year. Therefore, the organizing committee has found it necessary to conduct an external audit on the financial statements of the company. Auditor Junior: (Confirms from the company documents on the table). ..mmmmh… ok.

Let me assure you once again that you are in the right place. By the way, there are other audit services that we offer besides the audit on financial statements. Some of the other auditing services include regulatory auditing, and analytics, and data auditing. Client: Thank you for the information. However, we are a small firm and as a start, we have found it appropriate to conduct an external audit on our financial statements. I think we will consider the other options later on. By the way, we operate under the hotel and hospitality sector.

I want to believe that your company has worked with firms in the sector before. Could you please inform me of some of the relevant statements and documents that should be available for the audit exercise?

References

Houghton, K, Ng, J, Jubb, C & Kend, M 2010, The Future of Audit: Keeping Capital Markets Efficient (pp. 700). ANU Press.
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