Internal Controls & Audit
My First Month Taught Me That a Fast Audit Isn't Always a Thorough Audit
Within my first month at a new organization, I experienced a statutory audit unlike anything I had seen during my previous years in finance. The experience completely changed the way I looked at audits, professional skepticism, and the importance of understanding a business beyond its accounting entries.
Published on 22 July 2026 • 7 min read
Introduction
When I joined a new organization during the first week of September, the company was approaching one of the busiest periods for every finance team—the statutory audit and income tax return filing season.
Although I had just joined the company, I was entrusted with coordinating the statutory audit and supporting the auditors throughout the process.
I welcomed the responsibility.
Having worked extensively with statutory auditors in my previous organizations, I was familiar with how detailed and collaborative the audit process normally is.
I expected long discussions, document verification, analytical reviews, management queries, and several rounds of observations before the audit was concluded.
What happened instead surprised me.
My Previous Understanding of a Statutory Audit
In my previous organization, statutory audits were never treated as a one-day activity.
The process generally involved:
- Reviewing accounting records in detail.
- Verifying supporting documents.
- Discussions with audit trainees.
- Technical reviews by senior audit staff.
- Meetings with the engagement partner.
- Management discussions.
- Rectification of observations.
- Final review before issuing the audit report.
The objective wasn’t merely to complete the audit.
It was to understand the business and provide reasonable assurance that the financial statements presented a true and fair view.
Naturally, I expected a similar approach in my new organization.
The Day of the Audit
The statutory auditor arrived in the afternoon.
We sat together and opened the accounting records.
A few ledger entries were reviewed.
Some accounting classifications were suggested.
A handful of entries were moved between ledger heads.
The discussions continued for roughly two and a half hours.
Around 4:30 PM, the company’s director joined us.
The auditor simply stated:
“The audit is complete.”
I was genuinely surprised.
Not because the audit had concluded successfully.
But because, based on my previous experience, I couldn’t understand how a statutory audit of an entire financial year could be completed in such a short period.
The Question That Stayed With Me
After the auditor left, I respectfully shared my concern with the Director.
I explained that my previous audit experiences had been significantly more detailed and involved much deeper verification.
The Director replied that the same auditor had been associated with the company for several years and was already familiar with its operations.
That explanation made sense.
Familiarity with a business certainly improves efficiency.
But one question continued to bother me.
Can familiarity ever replace verification?
For me, the answer was no.
Looking Beyond the Current Year
I requested access to the financial statements and audit reports from previous years.
My intention wasn’t to challenge anyone’s work.
I simply wanted to understand the business better.
Over the next few days, I carefully studied the historical financial information.
Certain patterns immediately caught my attention.
Although the financial statements appeared profitable on paper, the underlying financial position raised several questions.
My assessment was straightforward.
The reported profitability did not appear to reflect the economic reality of the business.
I shared my observations with the Director and explained the reasons behind my concerns.
To his credit, he listened carefully and encouraged an independent review.
A new Chartered Accountant was subsequently engaged.
After reviewing the same financial information independently, the conclusion broadly aligned with my concerns.
The business was facing financial challenges that were not immediately apparent from a superficial reading of the financial statements.
What I Learned
That experience taught me one of the most valuable lessons of my career.
An audit should never become a routine exercise.
Experience is valuable.
Familiarity is valuable.
Efficiency is valuable.
But none of them can replace professional skepticism.
Every financial year deserves independent verification.
Every audit deserves fresh questions.
Every finance professional should remain curious enough to ask:
“Does this financial information truly reflect the business?”
Practical Checklist
Whenever you participate in a statutory audit, ask yourself:
✔ Have I understood the business before reviewing the numbers?
✔ Am I relying on previous conclusions without sufficient verification?
✔ Have unusual trends been investigated?
✔ Does the reported profitability align with operational realities?
✔ Am I accepting explanations, or verifying evidence?
Key Takeaways
- Familiarity with a business should improve efficiency—not reduce professional skepticism.
- A statutory audit is more than checking ledger balances.
- Financial statements should reflect business reality, not merely accounting presentation.
- Finance professionals should develop the habit of asking thoughtful questions.
- Independent verification remains one of the strongest safeguards in financial reporting.
Final Thoughts
Looking back, I don’t remember that experience because of the audit itself.
I remember it because it changed the way I think about finance.
From that day onwards, I stopped accepting financial information at face value.
Instead, I began asking one simple question before trusting any report:
“What evidence supports this conclusion?”
That single question has helped me identify risks, improve reporting quality, and make better financial decisions throughout my career.
In my next article, I'll share how a single question from an employee led to the discovery of a much larger compliance issue - one that had remained unnoticed for a long time despite repeated audits.
About the Author
Aniruddha Birje
COST & MANAGEMENT ACCOUNTANT
Aniruddha Birje is a Cost & Management Accountant (CMA) with over 16 years of experience in finance, accounting, taxation, internal controls, audit, and business process improvement. Through AniruddhaBirje.com, he shares practical insights to help finance professionals and business leaders make informed decisions.
Let's Start a Conversation
Have a finance challenge, career opportunity, or question about this article? I'd be happy to connect.