I think the concept of “auditing the auditor” is accepted by most business owners. Still, the actual practice of it is not. I am sure there are several reasons for that, including those who think it is a waste of time or money, those who believe it to be redundant, or those who feel they trust their existing auditing system, so why bother? Let’s look at a brief overview of how the “audit the auditor” practice got started. Then, we can provide a few reasons why you might want to reconsider your position if needed. 

The concept of “audit the auditor” has existed for centuries, primarily in financial and accounting contexts. Designed initially to review financial records and ensure their accuracy, over the centuries, the role of auditors has expanded dramatically to include a variety of compliance and performance evaluations. 

While there is no confirmed record of it, one assumes the first “audit the auditor” happened when a business owner or manager suspected the accuracy of the information being provided by responsible employees or providers. Over time, not only did “audit the auditor” become a more common practice, but regulatory reforms were introduced to improve the quality of audits. In the US, for example, the Sarbanes-Oxley Act of 2002 was enacted in response to corporate scandals like Enron and WorldCom. 

Let’s discuss your business and why you might consider leveraging this powerful and enlightening tool.  

  • TRUST: Let’s say you already have a tech/telecom management service that monitors the myriad of costs related to those services for your business. And they have saved your business money. Why would you even consider auditing their work? Two key reasons: to either prove they are, in fact, doing a great job or perhaps to discover they’re not. Both are good things to know, right? If they are effective and know their stuff, they should welcome an audit, knowing it will confirm that. If they aren’t, it’s time for a change. The audit will provide the information you need. 
  • SAVING MONEY: If, in the above scenario, it is discovered your current providers (in-house or outsourced) are not doing a good job, you stand to save money by using a higher-quality provider. 
  • CONTINUOUS IMPROVEMENT: When it comes to auditing tech and telecom costs, part of the service should also include optimizing those services. Making sure you’re getting the lowest price is excellent, as it ensures your business is not overpaying for services, but a professional TEM service provider will also ensure you’re getting the best level of tech or telecom service possible for the expense. 
  • BUDGETING & FORECASTING: If your business relies on information generated by your current TEM service provider to plan budgets, forecast needs etc., you want to ensure you’re using the most accurate and up-to-date costs.
  • DETECT FRAUD / MISCONDUCT: While chances are not great that an outsourced TEM service provider is in cahoots with any of your tech or telecom service providers, it could happen. It is more likely to occur if you rely on in-house auditors. Enough said on this topic. 

We have found that organizations with multiple locations geographically disbursed are the most likely to benefit from an “audit the auditor” process. Within those organizations, using in-house staff or outsourced services, the complexity of managing not only tech but also telecom and utility costs region-to-region can be a huge undertaking. Having an auditor with familiarity, region to region, with prices, practices, tariffs, taxes, and more can go a long way to ensure your business is paying the right amount. There is no reason not to consider an audit, especially when you learn that Inverse Technology provides a complimentary assessment that can tell you quickly if you’re overpaying. Call us at 800-854-2444 to schedule a consultation, or go online to learn more at https://inversetech.com/services/auditing-services/