Audit Tales II

Previously on Audit Tales – auditor makes completely contradictory determinations on the same issue in two costs assessments

I am running this one next as there is a connection to yesterdays story in that it arises out of the same 2 audits. It also raises an important issue over and above the basic competence and/or approach of the initial auditors.

Here at least the auditor made the same consistent, yet erroneous, decision at both audits. In both cases this decision was raised, informally, with other relevant members of the LAA. In the first case this has been ignored and the firm advised as to their appeal rights. This is pretty much standard practice now – regardless of the objective veracity of the decision they will take their chances on a (perverse) decision from an ICA.

In the second the firm’s Contract Manager has responded honestly and openly, agreeing that the decision is a misinterpretation of contact.

If nothing else this demonstrates that they have, and they know they have, a different interpretation of the same point of contract. At the very least one would imagine that this would be something they would want to “escalate” within the organisation, to arrive at absolute clarity. This could then be openly communicated to suppliers.


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