As auditors, during these months we will have to evaluate the continuity and/or acceptance of clients based on the International Auditing Standard 210, analyzing among some aspects: integrity, communication, access to information, rotation of senior managers, understanding of the entity and its environment as well as its financial conditions, which will allow us to classify clients as moderate or significant risk. For those clients that present a significant risk, it is important to guarantee its management and evaluation, mitigating misunderstandings or future risks.
Saying no to a client is not an easy task, but as the auditing standard expresses and indicates, it is better to make the decision to not continue with a client and avoid incurring on some businesses that could affect the credibility of the firm in the future. It is important not to think individually and on the immediate benefit, but rather focus on long-term benefits; a client with significant risk, regardless of the fees, sooner or later will have consequences that could impact the firm.
Looking for a win-win business means linking clients who have a low-risk profile and reasonable fees that aline themselves with our work, always evaluating the cost-benefit, where there is a sense of tranquility in the execution of the tasks, for both the client and the firm.
Reputation and peace are priceless.
Paula Orjuela, Tax Inspection Director from Auren Consultores Medellín S.A.S