Auditors: the misunderstood referees of Accounting

The role of an Auditor, much like a sports referee, is often maligned and misunderstood. Both, however, are essential to the success of their respective ‘games’ as Audit Associate Director Brian Thomson discovered.

Auditor by day, referee by night

A couple of weeks ago I completed my Scottish Rugby Union refereeing qualification (no, I am not sure what I was thinking either). During the course, it became clear that there are many parallels between my Monday-to-Friday role as an RI (Responsible Individual) on financial Audits, and my new weekend one as a referee. 

Keeping players within the rules

An Auditor and a referee serve a similar primary function; to keep the players on the field within the rules of the game. In the case of Auditing, this is achieved by ensuring a true and fair assessment of a business is completed, as per UK Company Law.

To do this, a deep knowledge of the laws of the game is essential. At Consilium we invest in team training to ensure we offer clients an extensive and up-to-date knowledge base. However, a good Auditor – much like a good referee – knows the laws well enough to skilfully interpret them and help the process flow.

Quick and accurate decisions are paramount, especially when it comes to technical details. Our clients rely on us to correctly advise and interpret financial regulations and standards. Thus, ensuring a positive outcome for all the parties involved (at this point it might be worth imagining Companies House or HMRC as the governing body!). 

Advising players before the mistake

Underpinning all of those points is the importance of good communication. A good referee can, through clear communication and explanation be more effective. Rather than always explaining the rules after the infringement, they communicate what is expected of the players in advance. In doing so, they help them to stay within the rules and to win fairly.

In Audit, this means tailoring communication to each client and their specific needs. It means using the right forms of communication; swapping whistles and flags for meetings and digital updates. It also means refining communications so that each player, in their specific role, is advised and guided appropriately.

For example, the levels of information and insight required for a business owner, finance manager or bookkeeper vary. Similarly, the advice provided to a stand-off can be markedly different to that offered to a tighthead prop. Whether they listen or not is a different story!

It doesn’t need to be ‘the players versus the referee’

The relationship between referee and players is often characterised as antagonistic. Unfortunately, this can often be reflected in the auditor/client relationship. In both cases, a partnership approach is more effective.

At Consilium we pride ourselves in working in collaboration with Audit clients. Instead of simply laying down the rules and waiting for a player to make a mistake, we take a proactive approach.

Our Audit services are led by senior members of the team with significant ‘big game’ experience. We also ensure that our on-site client teams are knowledgeable and skilled communicators, offering businesses peace of mind throughout the Audit process. 

Audit services for businesses and charities

I would be delighted to speak to business owners, managers or charity trustees about Consilium’s approach to statutory Audit. Get in touch to arrange an informal chat or learn more about our Audit services for businesses and Audit services for charities.

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