Why the best audits happen when clients and auditors play on the same team

An audit is not a question-and-answer game where the auditor asks questions and the client tries to respond as quickly as possible. The best audits happen when both parties understand that, while they have different roles, they share the same goal: establishing accurate facts, ensuring reliable financial reporting and achieving a high-quality, efficient audit.

Being on the same team does not, of course, mean compromising the auditor's independence or professional scepticism. It means working together effectively while respecting each other's roles.

Understand why questions are being asked

Good collaboration starts when both parties understand not only what is being asked, but also why.

When an auditor requests documents or asks questions, explaining why the information is needed can make a significant difference. Providing context builds trust, helps prevent misunderstandings and saves time for everyone involved. At the same time, the auditor must maintain professional scepticism and verify the information received.

The same applies in reverse. If a client cannot provide information in exactly the format requested, it helps to explain why this is not possible or why a particular question cannot be answered.

For example, if the client's information system cannot generate a report in the requested format, the auditor can immediately start exploring alternative ways to obtain the necessary information and achieve the intended objective.

Meeting deadlines is more than just a courtesy

For an audit to run smoothly, both parties need to meet agreed deadlines. This allows everyone to plan their work effectively.

Auditors can complete their work as scheduled only if clients provide the requested documents on time and remain available to answer questions throughout the audit.

Unfortunately, there are situations where the audit team is left waiting for documents or responses, bringing parts of the audit to a standstill.

When the missing information finally arrives, however, work cannot necessarily resume immediately. Audit work is seasonal, and during the busiest periods, auditors' schedules are already fully booked.

As a result, a delay in providing information can lead to a much longer interruption in the audit process. It is therefore important to understand that if documents cannot be provided by the agreed date, the original audit deadlines may no longer be achievable.

Of course, plans sometimes need to change. When that happens, the most important thing is to communicate the change as early as possible.

"We won't be able to deliver this by Friday, but we can have it ready by Monday" is far more useful to an audit team than silence on Friday.

In a team sport, one player cannot simply decide to pass the ball whenever it suits them. The rest of the team's game depends on that pass.

A good audit starts before the audit begins

Many potential challenges can be addressed before the busiest phase of the audit even starts. The earlier both parties have the information they need, the less time they will spend putting out fires during the audit itself.

For example, it is worth agreeing in advance who the main contact persons will be and who can answer questions about specific areas.

It is also helpful to know when key employees will be on holiday or otherwise unavailable. This allows the auditor to plan which areas to address first and when to raise important questions, giving the client enough time to prepare their responses.

Another important step is identifying documents or reports that may take longer than usual to prepare. Not every delay can be anticipated, but the sooner potential issues are communicated, the easier it is for both parties to adjust their schedules.

Auditors particularly appreciate accountants who discuss unusual transactions or accounting entries with them in advance. These discussions can help establish whether the proposed accounting treatment complies with the Estonian Accounting Standards (RTJ). They also allow the auditor to document relevant information for subsequent audit procedures.

We also encourage finance teams to consider whether any significant changes have taken place within the company during the year before the meeting between the auditor and management.

Changes to systems, processes, organisational structures or significant transactions may mean that audit procedures used in previous years are no longer fully applicable. The auditor may therefore need to develop a new approach.

Good preparation does not mean there will be no surprises during the audit. It does mean that as many potential issues as possible have already been considered.

A problem does not have to become a conflict

The true strength of collaboration becomes most apparent when something goes wrong.

Tense moments are inevitable during an audit. Workloads are high, a promised file may be forgotten, and a brief email may come across as sharper than the sender intended.

An auditor may ask a question the client believes they have already answered. Equally, a client may not immediately understand why the auditor is revisiting an issue that seemed to have been resolved.

These situations are perfectly normal.

Good collaboration does not mean problems never arise. It means not allowing those problems to become personal.

Everyone makes mistakes, and misunderstandings happen. What matters is how we respond. Do both parties become defensive, or do they recognise that mistakes are part of working together and focus on moving forward?

People playing on the same team should, whenever possible, choose the latter.

This approach also helps build lasting working relationships. The best teams are not formed in a single match. They develop over time.

The same is true of the relationship between a client and an auditor.

One shared goal, different roles

Sometimes an audit can feel like a situation where the auditor is "looking for mistakes" while the client is "defending themselves".

This mindset can quickly create an "us versus them" dynamic.

In reality, although auditors must remain independent and professionally sceptical, this does not mean their relationship with the client needs to be confrontational.

An auditor can ask challenging questions while maintaining a constructive working relationship with the client. Both parties benefit from establishing accurate facts, ensuring reliable financial reporting and achieving a high-quality audit.

Audit quality depends on more than documents, figures and audit procedures. The way clients and auditors communicate, honour their commitments and work through challenges is just as important.

Being on the same team does not mean that auditors compromise their independence or that clients must always agree with them. It means fulfilling different responsibilities with mutual respect, open communication and a shared sense of purpose.

A good audit is not a game in which one side wins and the other loses.

The best results come when both parties understand their roles, communicate openly and work towards the same goal.