CFO insights for a successful audit partner relationship

The relationship with the auditor is fundamental to maintaining the integrity of financial reporting, mitigating risk, and ensuring organisational success. The strength of this partnership helps build trust with stakeholders, and supports the organisation's long-term financial health. The CFO sets the tone of this relationship, along with the audit partner on the engagement.

With these dynamics in mind, here are five CFO insights for a successful audit partnership:

1. Open communication. Regular, transparent communication between the CFO and the audit team is essential for early identification and resolution of potential issues and ensuring that financial reporting remains accurate and reliable. Communication may go beyond financial reporting cycles by including the audit partner (or other members of the team) in the company’s analyst events or periodic banker meetings.
2. Risk management collaboration. The CFO and audit team should work together to identify the significant financial risks discussed at the C-suite level, assess their potential impact, and develop strategies to mitigate them and safeguard the organisation's financial stability. 
3. Internal controls assessment. Management, internal auditors, and the audit team evaluate the effectiveness of internal controls, while the CFO ensures that these controls are robust and functioning as intended. Collaborative efforts identify gaps that can help prevent financial misstatements and fraud. 
4. Compliance assurance. The CFO is responsible for ensuring the organisation complies with all relevant financial regulations and standards, which is always a challenge in an ever-changing rules environment. The audit team assists by assessing compliance and identifying areas where the organisation may be at risk of non-compliance.
5. Continuous improvement. The partnership between the CFO and the audit team should focus on continuous improvement. By learning from past audits and implementing recommended changes, both parties contribute to enhancing the organisation's financial processes and controls. While this last item is never popular due to “audit fatigue” after an audit cycle, it is a very important step that can pay big dividends for both the company and the auditors. 

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Jay Goethal is an Area Managing Partner at SeatonHill Partners. In this role, he leads a high-performing team of seasoned CFO Partners who provide interim, fractional, and project-based financial leadership across a wide range of industries. Jay brings significant experience as a former CFO in the motor manufacturing sector, with a strong track record of driving operational efficiency and financial performance both domestically and internationally. His expertise spans global supply chain management, including import/export operations, international sourcing, and manufacturing oversight.