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ASSET FINANCIALS
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Will you make a difference?

The audit profession is going through enormous change. Therefore, the profession needs people that are able and willing to be part of that change. More than that, we need people that drive it. And those people are you, today’s students. But how will you make a difference?

One of the nice things about the audit profession is that there is a constant inflow of young, ambitious people. Some of them may have the idea of being an auditor for life, others may like the profession because it enables them to develop as a finance professional and may, after having gained experience as an auditor, want to become a controller, internal auditor or CFO. A substantial portion of the staff in an audit firm consists of people with less than 5 years of experience who have completed their education relatively recently. Those people bring new ideas, new skills and a new culture.

Audit firms have not always benefited as much from this as they could have. A common approach in the past has been to hire people with similar skills and educate and train them in a standardized way. This may work well when compliance with a detailed set of relatively stable auditing standards is the objective. Audit teams that consist of team members who have all been trained in the same way and are familiar with the same standards can achieve their objectives effectively and efficiently.

This approach does however not work well in a changing profession that needs new and more diverse skills. Furthermore, also in a non-changing environment uniformity within a team does not always result in the best decision making. In the sector report, In the public interest, the organization of contradiction within the organization and challenge of existing habits is mentioned as an important way to achieve quality. One of the ways to achieve it has been developed into a sector measure. The implementation of a supervisory board with external members is proposed to achieve challenge from outside the organization in a top-down way.

But the challenge should also come from the inside, from you. By bringing your ideas into the organization and challenge existing habits. Audit firms recognize your contribution and added value and a number of audit firms organize this challenge by giving young professionals a platform and structure to provide their input. But input via such formalized structure is only a fraction of what is needed. The most useful and fun discussions that I have in daily practice are those when the people that I have the discussion with have done their research in advance and the discussion starts with a well-supported position. When people are able to have a real two-way discussion about the topic, are able to look at the issue from multiple directions and challenge others and their own first views. The people that I have those discussions with make much more impact than the people that just ask for the answer. They are the people that improve quality and realize the change that we want to realize. I challenge you to have such discussions every day.

Of course your studies should provide you with a strong basis to start in the auditing practice. After your studies you know about the basics of auditing, accounting, internal control and various other relevant areas.
But it is just the basics and quality improvement requires continuous investment in your knowledge and skills. The sector report therefore devotes a chapter to “A culture in which quality improvement is the norm” and proposes a number of measures to achieve this.

Now, let me challenge you. Is it currently part of your mindset? In your studies, do you strive for a 6 or do you set the bar higher for yourself? Do you regularly read Accountant.nl to understand what is happening in the sector? Did you read the sector report? Did you read IFRS 15, the new revenue standard, last year? Will you read the new lease standard this month? Is it expected from you? Does it actually matter whether someone else expects it from you? Do you want to invest in making a difference, that’s the question.

And be confident about your strengths. The sector is becoming more and more technology driven. Effective use of this technology is crucial in the audit of today and certainly in the audit of the (near) future. You have been raised with technology and using it is for you more a second nature than an adapted style which it is for many experienced people in the profession. You can make a difference by embracing the existing technology in the audit, helping team members to use it effectively and developing it to the next level. If you really want, you can take the profession in tow to the next, bright, decade. Can the profession count on you?

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