Auditor Question

LUFAS allows an auditor to pre-select transactions prior to a unit’s audit. Should (or can) the auditor share the list of pre-selected transactions with the unit clerk?

There is no requirement that they auditor share it beforehand but at least when I was an auditor there was no direction not to share. However, I'm not sure I would tell the unit beforehand. If the unit is going to review documentation prior to the audit, I'd prefer they review everything rather than just the transactions I was going to audit.

wrigjef wrote:LUFAS allows an auditor to pre-select transactions prior to a unit’s audit. Should (or can) the auditor share the list of pre-selected transactions with the unit clerk?

Sure. During the audit, when you are reviewing the items and their supporting documentation. Not before.

The goal of an audit is to verify whether or not the unit is complying with policies and procedures. You do that by taking a sample of the transaction and comparing what was actually done at the time to what should have been done. So while the fact that an audit is coming is not a surprise, the unit doesn't get to find out what transactions are being reviewed until you are actually reviewing them. Then, if there are exceptions, the audit report identifies what training and corrections need to occur so that they don't happen again in the future.

So, while sharing the list of transactions in advance may help the unit pass the audit by allowing them to catch any issues before you do, it doesn't help the overall goal of helping the unit comply each and every time, without exception.

allenjpl wrote:The goal of an audit is to verify whether or not the unit is complying with policies and procedures. You do that by taking a sample of the transaction and comparing what was actually done at the time to what should have been done. So while the fact that an audit is coming is not a surprise, the unit doesn't get to find out what transactions are being reviewed until you are actually reviewing them. Then, if there are exceptions, the audit report identifies what training and corrections need to occur so that they don't happen again in the future.

When I served as clerk, I always reviewed every transaction for the quarter before every audit. I considered it standard practice to properly prepare for any audit. Sometimes, I found an error made by me or the assistant clerk-finance that I could correct before the audit occurred. If the audit revealed the error, at least it was already corrected. Win-win in my book.

When I was a stake financial clerk, after all the audit reports came back I’d compose and send an email to all the ward clerks listing the exceptions, not the responsible ward, and tips that could help avoid each issue. I’d send the same email again. After that audit I’d do the same thing but also include the tips from the prior email, deleting any duplicates. After a few years we ended up with a very practical, locally applicable and helpful document. I wish I still had a copy but I could start another.

I just watched a video in the help center that mentioned that audits were to help teach and correct rather than to be a “gotcha” opportunity.

Requiring a clerk to make a correction, either before or after the audit, would serve to teach and correct, but one method provides an opportunity to say “gotcha”.