Auditing – It’s a Risky Business

No, not the old style “gotcha” auditing where each project starts with two lies:

Auditor says “ I'm here to help you”.
Audit client says “I'm glad you're here”.

Modern auditing is all about risks, negative things that can occur. Risks are generally ranked by two criteria: Probability and $$.

What kind of risks?
Financial risks, government sanctions, reduced patient care, negative publicity, loss of business, decrease in donations and grants, stolen research, Medicare penalties, fraud, employee safety, inefficient procedures, excessive costs, non-compliance with laws, theft of assets, etc. etc. etc. etc. etc. etc. etc. That is why you see auditors more and more in non-financial areas.

So does that mean that auditors are experts in all areas?
Not at all, but auditors understand risks and controls to eliminate or mitigate them. They look for procedures and processes that the audit client should have in place to address risks. They also keep up with what is going on at other medical centers and universities (to help us avoid repeating their mistakes).

So what should I do when an auditor shows up in my area?
Well, first realize that our auditors are really in the management services business. They evaluate and make suggestions for improvements where needed. In fact, most of the reviews that we do originate from requests. We want to help you do things right, NOT catch you doing things wrong.

It's all about reducing risks- and that helps you and Wake Forest University !