I can think of an interview in my previous organization, which didn’t lead to the discovery of information, but did uncover generous expenses claimed by the managing director at an overseas subsidiary.
It was an interview with the vice-president of finance. When the excessive claims came to light we asked why he didn’t tell the audit team. He said he was about to in the interview but the occasion didn’t arise.
I can quite understand that. If the auditor goes in with a prepared set of questions (which they should), he/she must also be prepared to deviate from them by following up queries arising from the answers.
The lesson learned was that the auditor should work at gaining everyone’s confidence as soon as possible. Most importantly, at the end of the interview the auditor should look the interviewee in the eyes and ask, “Is there anything else you would like to say?” The auditor must record the answer.
-David M Griffiths Ph.D., FCA,
Trustee and Compliance Manager,
The United Charities of Abel Collin
