We developed a broader and deeper understanding of the companies we audit because we were able to conduct more comprehensive conversations with people directly involved in its day-to-day operations. At our firm, these types of conversations continue in 2021 and will remain, in some form, a part of our engagements. I believe this will be a significant value-add moving forward. In addition to the time incurred, there are inherent hard costs to performing audits in-person: travel, lodging and other incremental expenses. Most, if not all, of those went away in 2020. However, the effort (hours) to perform the audit, was either the same or more than before. It was hard to pinpoint why this was the case, or to quantify it. As a result, it seemed logical to blame the time-consuming nature of transitioning into a fully digital audit process. Our clients experienced it on their end as well – things just seemed to take longer. There was a general feeling that the pandemic had an adverse impact on efficiency. As a result, our clients amicably agreed to evenly share in any incremental costs. I was never so proud and appreciative of the relationships my team and I built with clients over the years because I am not sure that navigate to these guys would have been the outcome if it was not for those strong foundations. In 2021, with more than a year of experience in the virtual environment, our clients now perform their monthly, quarterly and annual close remotely and have the process under control. To complement that, we too have seamlessly integrated into their hybrid space. We were prepared, recognized some great efficiencies in the process, and completed our audits ahead of schedule. In those instances, we were in a good position to share cost efficiencies with the company as a thank you for their understanding of the cost inefficiencies of 2020. The coming years will offer opportunities for innovation in how we embrace the hybrid model and reimagine the dynamic of our client relationships.https://www.accountingweb.com/aa/auditing/auditing-challenges-and-changes-post-pandemic
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