Repeated audits improve firm procedures

According to the latest results of the Australian Securities and Investment Commission (ASIC) audit inspection programme from 1 July 2006 to 31 December 2007, firms that have been audited a number of times had much tighter quality controls than firms that were being audited for the first time.

Most firms that had already been audited had allocated additional resources to improve quality control, current processes and procedures. A number of these firms had also employed external auditors to conduct additional audits. Many of the firms that did not have previous experience of the ASIC audit process were often found to be under prepared in terms of effective, transparent regulations and procedures that can be inspected and evaluated objectively.

Based on this evidence, it demonstrates the real benefits of repeated external and internal audits to continually improve quality control, processes and procedures.