The old saying “garbage in, garbage out” holds true when it comes to audit results. Most audit processes require organizations to provide a list of requested documents for review by your auditor(s). Based on experience, if the staff handling the documentation is unfamiliar with your processes, policies, procedures, system capabilities, or supporting materials, it can increase the risk of audit findings. Experienced staff offer the advantage of providing documentation that is accurate, complete, and well-organized, helping audits run more smoothly and efficiently. Yet, many organizations unintentionally make mistakes that can slow down the process or lead to audit findings. 

The following are common mistakes we see while conducting audit services that undermine the effectiveness of the audit: 

Incomplete Documentation 

Issue: Missing key documents or pages (e.g., agreements without amendments or schedules). 

Impact: Auditors may need to request additional items, delaying the audit and increasing your organization's cost for the audit. 

Disorganized Files 

Issue: Documents are not labeled, grouped or appropriately indexed. 

Impact: This can make it difficult for auditors to locate information, leading to inefficiencies and potential misinterpretation of the provided information.  

Lack of Supporting Evidence 

Issue: Summary reports are provided without underlying support. 

Impact: The accuracy of the information cannot be verified, which may result in audit exceptions. 

Late Submissions 

Issue: Documents are provided after agreed deadlines. 

Impact: Confusion is created, slowing down the review process. 

Not Addressing Auditor Questions 

Issue: Responses to specific inquiries are missing or limited to generic answers. 

Impact: Repeated follow-ups may be required, creating potential for misunderstandings. 

Version Control Issues 

Issue: Outdated or draft versions of documents are sent. 

Impact: Incorrect conclusions may result, or audit procedures might need to be repeated. 

Security and Access Problems 

Issue: Files are password-protected, or links to the documents have expired. 

Impact: Auditors are prevented from accessing needed documentation, resulting in a delay of audit completion. 

Lack of Context or Explanation 

Issue: Complex documents without notes or explanations are submitted. 

Impact: Data may be misinterpreted or require additional clarification. 

Avoiding these common mistakes can lead to a more efficient and effective audit process. By focusing on completeness, organization, relevance, and clarity, organizations can support auditors in delivering high-quality results while minimizing disruptions and delays.  

Quick Tips for a Successful Audit 

  • Use the provided checklist to track all document requests.
  • Assign a knowledgeable point person to handle documentation.
  • If no samples exist or activity did not occur during the audit period, inform the auditor.
  • Review document submissions for completeness and clarity before sharing.
  • Communicate proactively if something is unclear; ask the auditor for clarification.
  • Keep a record of what was provided; it can be invaluable for future audits.

Following these best practices can make a significant difference in the efficiency and effectiveness of your audits. As year-end approaches, many teams tackle assessments on their own using our DIY Workbooks, but nothing beats a fresh set of eyes. (You can find our Workbooks in the online store by clicking the "Risk Management and Compliance” tab on the left-hand side.) 

Our experts provide guidance on audit and risk assessments, helping you identify gaps, streamline processes, and ensure compliance. With Nacha announcing that roughly 700 financial institutions and 400 Third-Party Senders each quarter will be asked to provide proof of their ACH audits, staying prepared is more important than ever.

Republished with permission by EPCOR.