Auditing Practices Overview

The holy grail of insights, growth ideas and also the cause of dropping KPIs. And, in my experience, still most-overlooked and neglected part in marketing... It's the customer journey. And that's why it's always step #1 in my marketing audit process. So what does the audit look like? It starts with the content dimension analysis. 1. Define and align on customer journey stages with the team. Why: often, the understanding of the journey is quite different across teams. 2. Determine and align on KPIs for journeys. Why: similar to above, often misunderstanding leads to different views on performance; even more important - making sure there is tracking of the needed KPIs. 3. Analyse content types for each journey stages. Why: it shows gaps or, in contrast, over-saturation across stages, prevents sporadic and random creation of content. I have done this exercise across all my companies. No matter the size or marketing advancement, there is always something we could find we could do better or different. Have you used the same approach? What were your revelations? P.S. This is part 1 for the marketing audit template I promised to share. The next part will be on channel audit.

📌 Understanding Audit Assertions 🔍 When reviewing financial statements, auditors rely on assertions made by management regarding transactions and account balances. These assertions help assess the reliability and accuracy of financial data. 🔹 Assertions about Transactions: ✔ Occurrence: Ensuring that recorded transactions actually took place. ✔ Completeness: No transactions are missing or omitted. ✔ Accuracy: Transactions are recorded without errors in amounts or calculations. ✔ Cut-off: Transactions are recorded in the correct accounting period. ✔ Classification: Transactions are recorded in the appropriate accounts. ✔ Presentation: Information is presented clearly and in accordance with financial reporting standards. 🔹 Assertions about Account Balances: ✔ Existence: Assets, liabilities, and equity balances actually exist. ✔ Rights & Obligations: The entity has legal ownership of assets and responsibility for liabilities. ✔ Completeness: No unrecorded or understated balances. ✔ Accuracy, Valuation & Allocation: Balances are recorded at appropriate values per accounting standards. ✔ Classification: Assets and liabilities are properly categorized. ✔ Presentation: Financial data is disclosed in a clear and understandable manner. ✅ How Are These Assertions Verified? Auditors perform substantive procedures such as invoice reviews, contract examinations, transaction tracing, and disclosure checklists to ensure compliance with accounting standards. ⚖️ Why Are Assertions Important? They form the foundation for assessing the accuracy and reliability of financial reports, reinforcing stakeholder trust in financial statements. #Audit #Accounting #IFRS #CPA #FinancialReporting

🚨 The Income Tax Act, 1961, is HISTORY! 🚨 After 60+ years, India's tax laws are getting a massive transformation! The Income Tax Bill 2025 brings clarity, simplifies compliance, and encourages digital adoption. Here’s what you MUST know: ✅ 1️⃣ No More AY & PY Confusion! – Say hello to "Tax Year" instead of the complicated Assessment Year & Previous Year system! ✅ 2️⃣ Higher Limits for Businesses & Professionals 📈 44AD (Business): ₹2 Cr ➡ ₹3 Cr 📈 44ADA (Professionals): ₹50 Lakh ➡ ₹75 Lakh ✅ 3️⃣ Housing Loan & Rental Income Updates 🏡 Interest on Housing Loan – Can only be set off against rental income 🏡 Self-Occupied Property – No deduction for housing loan interest 🏡 Loss from Rental Property – Can be adjusted against other rental income but not carried forward ✅ 4️⃣ Exemptions & Allowances Tweaked 💼 HRA (House Rent Allowance) – No exemption allowed! ✈️ Travel & Daily Allowance – Still allowed for official tours/trips 📉 Standard Deduction: ₹75,000 🏦 Employer Contributions (Deduction Eligibility) – 🔹 NPS: Up to 14% of basic salary 🔹 EPF: Up to 12% of basic salary ✅ 5️⃣ Tax Filing Due Dates Extended 🗓️ Tax Audit Filing: Sept 30 ➡ Oct 31 🗓️ ITR Filing: Oct 31 ➡ Nov 30 ✅ 6️⃣ No Change in Capital Gains Tax – LTCG & STCG rates remain unchanged! ✅ 7️⃣ Digital Push for MSMEs – Businesses with up to ₹10 Cr turnover via digital transactions get audit relief! ✅ 8️⃣ CA Exclusive Audit Rights – Despite speculations, only Chartered Accountants can conduct tax audits. Relief for CAs! ✅ 9️⃣ More Sections, Less Complexity – The new law has 536 sections, 23 chapters, and 16 schedules – structured better for easier interpretation! ✅ 🔟 Fewer Pages, More Clarity – From 823 pages (old Act) ➡ 622 pages (new Bill). More concise, yet comprehensive! 💬 Are these changes truly simplifying taxation, or just a rework? Let's discuss! Share your thoughts below! ⬇️ For more insights, follow Pushti Shah #IncomeTaxBill2025 #Finance #Taxation #NewTaxRegime #CharteredAccountants #TaxUpdates

Real-time Audit and Assurance interview Q&A Q1: What is the primary objective of an audit? A: The primary objective of an audit is to express an opinion on the fairness and accuracy of the financial statements in accordance with applicable financial reporting frameworks (e.g., GAAP, IFRS). It ensures that the statements are free from material misstatement, whether due to fraud or error. Q2: How do you test internal controls during an audit? A: Testing internal controls involves: Understanding the Process: Reviewing process documentation, flowcharts, and walkthroughs. Assessing Design Effectiveness: Ensuring controls are designed to mitigate risks effectively. Performing Tests of Controls: Conducting sample testing, inspecting evidence, or performing re-performance to check operational effectiveness. Evaluating Results: Concluding whether the controls are working as intended or if there are deficiencies. Q3: What are substantive procedures? Can you give examples? A: Substantive procedures are audit techniques used to detect material misstatements in financial statements. Examples include: Test of Details: Verifying individual transactions or balances, such as checking invoices or contracts. Analytical Procedures: Comparing trends, ratios, and variances, such as comparing gross profit margins year-over-year. Q4: What is the audit risk model, and how is it applied? A: The audit risk model is: Audit Risk (AR) = Inherent Risk (IR) × Control Risk (CR) × Detection Risk (DR). Inherent Risk: The risk of material misstatement without considering controls. Control Risk: The risk that controls fail to detect or prevent misstatements. Detection Risk: The risk that the auditor's procedures fail to detect misstatements. Auditors apply this model to determine the nature, timing, and extent of audit procedures. Q5: How do you determine materiality in an audit? A: Materiality is determined based on the following: Quantitative Factors: A percentage of benchmarks like total revenue, net profit, or total assets. Qualitative Factors: The nature of the transaction, regulatory impact, or stakeholder significance. Materiality thresholds help focus audit efforts on areas with potential significant misstatements. Audit Reporting Q6: What are the different types of audit opinions? A: Unqualified Opinion: Financial statements are free from material misstatement. Qualified Opinion: Financial statements are fairly presented except for a specific issue. Adverse Opinion: Financial statements are not fairly presented. Disclaimer of Opinion: The auditor cannot express an opinion due to a lack of sufficient evidence. Q7: Explain the difference between vouching and verification. A: Vouching: Examining source documents to ensure transactions are recorded correctly (e.g., verifying invoices and receipts). Verification: Checking the existence, ownership, and valuation of assets and liabilities (e.g., physically inspecting inventory or confirming balances with third parties).

As Internal Auditors, we often face challenges during fieldwork in uncovering the embedded reasons why issues occur, in order to implement lasting solutions. Therefore, the true value of internal audit lies in improving processes and preventing the recurrence of problems by identifying the Root Cause Analysis (#RCA), rather than merely addressing the symptoms. For instance, recommending that "the team should follow the procedure" for an observed non-compliance does not solve the problem if the actual root cause is an outdated, poorly written, or impractical procedure. The RCA is a systematic process for identifying the real underlying “root cause” of an error, problem, missed opportunity, or instance of non-compliance. It consists of five key steps: defining the problem, collecting the data, determining the cause, identifying the root cause along with potential solutions, and implementing those solutions. The most common tools are Fishbone Analysis and the 5 Whys. #Internal_Audit #IIA #GIAS #IPPF

From 4M to 7M; from Chaos to Control : A Modern Blueprint for Process Perfection In manufacturing, chaos and inefficiency rarely come from a single cause. More often, they’re the result of overlooked details across multiple areas. That’s where the 7M Checklist for Process Control comes in a powerhouse framework that top-performing companies use to drive quality, efficiency, and reliability on the shop floor. Why NOT traditional 4M but 7M ? 4️⃣Ⓜ️: A classic framework in quality and process management, consisting of Man, Machine, Material, and Method. These are viewed as the major influences on any process and are used to analyze, control, and improve it, especially in manufacturing and production settings. 7️⃣Ⓜ️: An expanded model that adds Measurement, Mother Nature/Milieu (Environment), and Management/Maintenance (depending on context) to the original 4M. This broader approach captures more factors that can affect quality, consistency, and process outcomes The 7M Categories 1️⃣ Man: Management and Leadership; training and empowering people; clear roles and responsibilities and adherence to standardized work. 2️⃣ Machine: Capable Machinery/Equipment; always kept in good shape, safety interlocks, and continously monitored process control points/parameters. 3️⃣ Material: Right material; consistent and stable quality; traceability and contamination control. 4️⃣ Method: SOP availability, statistical process control, ergonomics, and error-proofing. 5️⃣ Measurement: Calibration, inspection traceability, and SPC for critical quality equipment/parameters. 6️⃣ Mother Nature/Environment: Environmental controls, zero waste/emissions targets, cleanliness (5S), and risk mitigation. 7️⃣ Maintenance: Periodical, Condition Based and Predictive Maintenance, deep analysis of breakdowns, spares, Autonomous Management. Why 7M Checklist: ✅ Root Cause Analysis: When something goes wrong, the 7Ms provide a roadmap for troubleshooting. Nearly 80% of production errors can be traced back to one of these categories ✅ Proactive Quality Management: The checklist isn’t just for fixing problems, it’s a tool for preventing them. Regularly reviewing each M keeps your process stable and your product quality high ✅ Universal Application: Whether you run a global factory or a small shop, the 7M approach scales to any operation. Implementation Tips ☑️ Use the checklist as a living document, update it as processes evolve. ☑️ Involve cross-functional teams for broader insight and stronger buy-in. ☑️ Turn assessments’ results into focused action plans that support long-term operational goals. By systematically checking each “M,” you build a culture of continuous improvement, reduce surprises, and deliver products that meet (and exceed) expectations every time. Don’t wait for problems to pile up. Make the 7M Checklist your daily habit and watch your production line run smoother than ever.

Know Your Auditee — Deliver Better, Not Louder Audit isn’t just about the finding. It’s about whether the message lands — and whether the risk gets controlled. Here are 5 common auditee types — and how serious auditors adjust their delivery without diluting the message: — 1. The Defensive Expert Knows the process better than the auditor — and isn’t afraid to challenge the audit logic. Approach: Come prepared with evidence, not just policy. Clarify risk exposure, not just compliance gaps. 2. The Fix-It-Oriented Doesn’t want discussion — just the list of what to do. Approach: Be direct. Give specific, actionable points. Avoid technical jargon. Make risk consequences clear. 3. The Silent Skeptic Politely nods in meetings, but never implements. Approach: Show impact. Use past incidents, control failures, or quantifiable gaps. Build trust before pushing change. 4. The Over-Apologizer Admits the issue — but doesn’t follow through. Approach: Shift focus from acknowledgment to commitment. Pin down timelines, owners, and real action. 5. The High-Level Observer Watches quietly — often with the real decision power. Approach: Elevate the discussion. Translate audit issues into strategic risk. Talk governance, reputation, continuity. — Audit is not about raising your voice. It’s about raising clarity — so risk is owned, not just acknowledged. Strong audit delivery adapts — not to soften findings, but to ensure accountability sticks. — #InternalAudit #AuditExecution #AuditeeManagement #AuditDelivery #StakeholderEngagement #RCM #AuditThatMatters #ControlTesting #RiskCommunication #AuditInsight

🔍 ISO 9001:2015 Audit Checklist – A Practical Guide for Auditors & Quality Leaders An audit checklist is not just about ticking boxes — it’s a structured tool to evaluate whether the Quality Management System is truly effective, compliant, and delivering business value. 1️⃣ Context of the Organization (Clause 4) ✔️ Has the organization identified and reviewed internal & external issues that affect its QMS? ✔️ Are stakeholder needs and expectations (customers, regulators, employees, suppliers) identified and monitored? ✔️ Is the scope of the QMS documented, relevant, and communicated? ✔️ Are processes defined with inputs, outputs, responsibilities, and performance indicators? 2️⃣ Leadership (Clause 5) ✔️ Is top management actively demonstrating leadership and commitment to quality? ✔️ Is the Quality Policy relevant, communicated, and understood across all levels? ✔️ Are roles, responsibilities, and authorities clearly assigned and recognized by employees? 3️⃣ Planning (Clause 6) ✔️ Are risks and opportunities systematically identified and addressed? ✔️ Are measurable quality objectives established at different levels and reviewed periodically? ✔️ Is organizational change managed in a structured and controlled manner? 4️⃣ Support (Clause 7) ✔️ Are adequate resources available and maintained? ✔️ Is staff competence ensured through training, evaluation, and skill development? ✔️ Are employees aware of their contributions to quality and the impact of nonconformities? ✔️ Are documented information and records controlled, updated, and retained properly? 5️⃣ Operation (Clause 8) ✔️ Are operational activities planned and controlled to meet customer requirements? ✔️ Is customer communication effective for inquiries, contracts, changes, feedback, and complaints? ✔️ If applicable, is design & development managed with reviews, validation, and controlled changes? ✔️ Are suppliers evaluated, monitored, and re-evaluated based on performance? ✔️ Are production and service processes validated, traceable, and compliant with acceptance criteria? ✔️ Is customer property safeguarded and properly maintained? 6️⃣ Performance Evaluation (Clause 9) ✔️ Are KPIs and process performance monitored, analyzed, and acted upon? ✔️ Is customer satisfaction measured through surveys, complaints, and feedback? ✔️ Are internal audits planned, executed, and followed-up with corrective actions? ✔️ Are management reviews comprehensive, covering inputs & outputs? 7️⃣ Improvement (Clause 10) ✔️ Are nonconformities investigated with proper root cause analysis? ✔️ Are corrective actions implemented and verified for effectiveness? ✔️ Is continual improvement embedded in processes, culture, and business performance? ✨ Found this helpful? 🔔 Follow me Krishna Nand Ojha, and my mentor Govind Tiwari,PhD for insights on Quality Management, Continuous Improvement, and Strategic Leadership Let’s grow and lead the quality revolution together! 🌟 #ISO9001 #Audit #QMS

Audit Red Flags: Lessons from the Frontline I asked several external auditors across the EU to share the most alarming feedback they’ve encountered during inspections over the past five years. Their answers were both revealing and unsettling, highlighting systemic issues that demand attention from leadership. Here are some of the most striking examples: • “I escalated and was told to continue as it is.” This suggests a culture where raising concerns is not just discouraged but actively ignored, allowing non-compliant practices to persist unchecked. • “I know, but when I report, nothing has been done; it’s been this way for years.” This reflects a systemic neglect of compliance risks, leading to a breakdown of trust in the organization’s ability to address critical issues. • “It’s not my responsibility.” A lack of ownership creates dangerous gaps in processes and controls, increasing the likelihood of compliance failures. • “We prioritize operational output over compliance.” When compliance is sidelined for productivity, organizations may risk of-becoming a culture of corner-cutting. • “We don’t have the resources to address that.” Resource constraints can leave critical gaps in compliance frameworks • “I wasn’t aware that was required.” Training and communication failures mean employees may unintentionally breach regulations • “We’ve always done it this way; why change now?” Resistance to change or adherence to outdated practices stifles progress and can result in non-compliance with evolving regulations. These responses reflect systemic failings in governance, accountability, and cultural alignment. Addressing these issues requires a holistic approach: 1. Cultural Transformation Leadership must foster an environment where employees feel empowered to report concerns without fear of retaliation. Building a compliance-first culture means embedding ethical behavior into the DNA of the organization. 2. #Accountability at All Levels #Compliance should not be seen as the responsibility of a single department. Clear roles and responsibilities must be defined, ensuring everyone understands their part in maintaining regulatory adherence. 3. Resource Allocation Compliance cannot be an afterthought. Organizations must invest in the right tools, personnel to ensure systems are robust and scalable. 4. Ongoing Training and Communication Regulations evolve, and so must your workforce’s understand them. Regular training sessions ensure employees remain informed and capable. 5. Proactive #RiskManagement Waiting for an inspection to identify issues is reactive and costly. Organizations should conduct regular internal audits to identify and address compliance gaps before they escalate. 6. Leverage Technology Technology can streamline compliance monitoring, reduce human error, and improve reporting capabilities. From automated risk assessments to AI-driven analytics, the tools are out there—invest in them. #CorporateGovernance #OperationalExcellence

Microsoft recently admitted it let engineers in China help maintain its cloud systems for the U.S. Defense Department. Why this is important to know: even though American staff oversaw the work, those “digital escorts” often lacked the skill to spot malicious commands. That gap could make secret military data an easy target for cyberattacks. When a mistake like this happens, it shows how a single weak link in a cloud setup can put our national security at risk. The way this system worked was simple but dangerous. Microsoft hired U.S.-cleared workers to act as messengers for overseas experts. An engineer abroad would send instructions, and the escort would copy and paste them into the Pentagon’s cloud. On paper, U.S. personnel held the keys. In reality, they sometimes couldn’t tell if the code was safe. Lawmakers and the Defense Secretary quickly raised alarms. They demanded stronger rules to keep foreign nationals out of the most sensitive systems. After a ProPublica report exposed the issue, Microsoft said it has stopped using China-based engineers for Defense Department support and expanded its “Lockbox” review process. The company also promises more training and stricter checks on any team working with federal data. This change is a step forward, but it reminds us all how vital it is to watch every part of a cloud network. Staying alert and updating security rules can help prevent the next data breach. #Cybersecurity #CloudSecurity #DataPrivacy #ChangeYourPassword Follow me for regular updates on tech security insights.