Audit practices, like many other businesses, thrive on forging robust relationships with clients. A recent review of client relationships identified the following key challenges:
- Undefined mutual expectations
- Vague communication protocols
- Unrecognised changes in work scope
- Services falling short of client expectations
- Misaligned fees for services rendered
- Perception of commoditised service
- Delayed issue resolution
The foundation of strong client relationships lies in clear expectations, exceptional work quality, and consistent communication. Most professional firms would say that they deliver good service. Yet, the question remains: why do some external audit firms fail to consistently deliver top-tier service to their clients? The culprit often lies in over-prioritising task completion, sidelining the essential task of proactive relationship management.
Here are seven key strategies to enhance client relationships for audit firms:
1. Clarify Expectations Early On
The purpose of engagement is to set expectations up front. Taking the time to prepare clients for external audits at the start of an engagement is a critical part of the audit planning process, where both parties align on scope, timelines and responsibilities before work begins.
However, many professional service firms regard the engagement letter simply as a legal contract rather than a service agreement that outlines ‘how we will work together.’
Address challenges in meeting client expectations
Managing client expectations while delivering audits on time is a common challenge. To maintain quality and efficiency, auditors should focus on:
- Balancing timelines and quality: Deliver audits within required timeframes while maintaining professional scepticism and high standards.
- Applying structured audit planning: Allocate the right time and resources, assign responsibilities and establish clear timelines for key deliverables such as trial balances, general ledgers and supporting documentation.
- Anticipating potential issues early: Identify risks and challenges during planning to reduce disruptions during the audit.
- Maintaining clear accountability: Ensure all parties understand their responsibilities and follow agreed timelines.
- Improving coordination across the process: Keep workflows organised to avoid inefficiencies and delays
Manage scope changes and unexpected audit issues
Audit engagements can become more complex when the scope shifts during the process. For example, issues may arise during testing that were not identified at the planning stage, requiring additional procedures, supporting documentation and time. These changes can impact both timelines and resource allocation, making it important to remain flexible while maintaining clear communication with the client.
Access to client systems also plays a key role in keeping the audit on track. Delays in obtaining data, particularly from restricted IT environments, can slow down progress and affect delivery timelines. Ensuring timely and appropriate access helps reduce bottlenecks and supports a more efficient workflow.
Maintaining ongoing communication with the client’s finance team is essential throughout the audit. Addressing issues early, discussing findings as they arise and providing practical recommendations helps improve the overall process. This also reinforces transparency and builds trust between both parties.
Define the audit engagement beyond a standard contract
An engagement document which is more than just a contract is essential to really communicate to clients the servicing requirements of the audit. The service agreement should outline in detail:
- The audit’s extent and value
- Timeline and method of task execution
- Communication dynamics between parties
- Responsibilities and expectations on both sides
- Process for handling additional, out-of-scope tasks
- Mutual expectations in relation to process and outcomes
Action: Always set up a client induction meeting to facilitate a comprehensive understanding and mutual agreement on details of the audit engagement beyond what is just written in the document.
2. Master the Art of Active Listening
Part of effective communication is eliminating the barriers which lead to effective listening. Don’t plan a call or meeting when you know you’ve got limited time and may have to leave early.
If you are plagued by distractions, be it personal or professional, it will show through to your client. Try to solve those ahead of any client interactions so you can give them your full attention. Respect their time.
Yes, you have questions you need answers to, however don’t be in a rush to move on to the next question. Be present in the moment and you will find you’ll probably get more out of your client than you were expecting. Open ended questions always deliver better outcomes however they are often overlooked in the rush to complete the task.
Action: Equip your team with practical tools and techniques to enhance their listening and communication skills, ensuring they can effectively connect with clients and gather necessary information.
3. Deep Dive into Their Business
You will develop mutual respect if you can show a good understanding of your client’s business. Engaging with trends and key performance metrics relevant to the areas being audited and staying informed of the regulatory environment will give you a great contextual framework. It will show your client that you care about what you’re auditing enough to understand what the numbers and the business are really about.
As part of understanding the client, you also need to understand the internal controls. Interviewing the client and then documenting that work in a flowchart is essential. It is highly advisable to ask your client to go on a ‘tour’ of their business – this way you can match up information received with what the client actually does.
Action: Encourage your team to take time to explore the client’s business operations, industry trends, and regulatory environment to achieve a comprehensive understanding that goes beyond just the financials.
4. Foster a Collaborative Approach
Treat the audit process as a collaborative project with the client as your partner and colleague. Take the time to get to know what makes them tick, how they conduct themselves and what their goals are. Focusing on the human side will greatly improve the business side and make the experience pleasant for all involved.
A common question is how clients can ensure collaboration with auditors and the answer often lies in setting clear expectations and actively participating throughout the audit process.
The best way to achieve this is to set mutual expectations in relation to communication up front. Talk about what you expect from the client and what value you will deliver in return. When clients see the engagement as much more than a commoditised service, they will be more involved and supportive. This can be extremely helpful when difficult conversations are required.
Action: To commence collaboration, draft an initial list of client and auditor expectations regarding data requirements, point of contacts, timelines, and other relevant details. Outline the value the audit firm brings to the table beyond just compliance, including insights, advisory potential, and industry expertise.
5. Prioritise Consistent Communication:
Everyone wants to minimise last-minute surprises. Yet, few professional service firms give proactive communication sufficient attention. An efficient audit process requires regular communication to monitor expectations and to ensure the timely identification and resolution of accounting and financial reporting issues.
Because audit firms are (rightly) focused on reducing risk and making sure their work stands up to review, a calendar of key milestones enables the client to own the audit process and take control of emerging matters. Problems will still crop up, but having regular review of progress will help both sides handle such situations more efficiently
Action: Break down the entire audit process into distinct phases and key milestones, e.g., data collection, fieldwork, initial report drafting, review, finalisation, etc. Identify stages where challenges or roadblocks commonly arise, and label them as potential risk points.
6. Use technology to improve audit quality
To really add value, auditors should be using technology to ensure that the audit process is as efficient as possible, from data collection to analysis and reporting.
Data analytics is increasingly important in providing and effective auditors should be able to use data to provide feedback on potential improvements in business processes and performance.
7 Key Steps To Manage Client Relationships Effectively
With the right processes and supporting technology, audit firms can deliver more consistent and efficient service outcomes.
Step 1 – Establish the audit team and inform the client
Assign the right people based on skills and experience to ensure efficient delivery. Clear roles also support the audit planning process and help clients understand who is responsible for each part of the engagement.
Step 2 – Set up an accessible document system
Use shared platforms that allow clients to upload documents and track outstanding items in real time. This improves visibility and reduces delays.
Step 3 – Use structured risk assessment tools
Equip teams with tools and training to identify and document risks effectively, allowing focus on higher-risk areas.
Step 4 – Enable collaboration and communication platforms
Use tools such as Teams or Zoom to support real-time communication, especially for remote or multi-location teams.
Step 5 – Set clear workflow and communication expectations
Define timelines, responsibilities and response expectations early. This helps address a key question: how can clients ensure collaboration with auditors, which often depends on timely communication and shared accountability?
Step 6 – Use technology with proper oversight
Technology improves efficiency, but auditors must still validate outputs and question results to ensure accuracy.
Step 7 – Maintain regular client engagement
Engage clients throughout the year, not just during reporting periods. Ongoing communication helps reinforce value and improve future audit outcomes.
Action: Choose audit software which integrates seamlessly with the client’s systems and can automate repetitive tasks like data extraction and initial analysis. Provide training to all of the audit team.
7. Initiate Annual Reviews
Whilst there is no specific reference to an annual review in the Audit Standard ASA 210, in practice this is an essential part of every statutory audit. Even when there’s a pre-existing agreement to maintain a fee for service over several years, regular internal review is essential to ensure that the sharing of information is strong and consistent. This also provides opportunity to
- Ask the client about the quality of service and standard of communication over the past 12 months and
- Conduct a business health check to identify and understand any issues that may affect business performance over the next 12 months.
Action: Use feedback to enhance processes, improve training, and redefine communication strategies.
In Summary
Building enduring client relationships doesn’t have a shortcut. It demands time, persistence, and dedication. By understanding your client’s challenges, ambitions, and needs, and then calibrating your approach, you lay the foundation for mutual trust and engagement. There is no substitute for effective communication.
The National Audits Group prides itself on a high level of client engagement. We offer our clients uncompromising standards of delivery and expertise. We pride ourselves on our ability to establish, nurture and maintain trusted relationships and believe your success is, by every measure, our success.
We are more than just auditors! Let’s get talking – call now and discuss how National Audits Group can provide cost-effective solutions to meet your operational needs and strategic objectives.