A Systems Approach to Managing Financial Compliance and External Auditor Relationships in Growing Enterprises

• Author(s): Azeez Odetunde ; Bolaji Iyanu Adekunle ; Jeffrey Chidera Ogeawuchi
• Paper ID: 1708646
• Page: 326-345
• Published Date: 31-10-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 5 Issue 4 October-2021

Abstract

As enterprises grow, the complexity of managing financial compliance and external auditor relationships increases significantly. This explores the value of adopting a systems approach to streamline financial compliance processes while fostering effective collaboration with external auditors. A systems approach integrates various compliance functions across an organization, ensuring alignment with regulatory frameworks and enabling real-time monitoring of financial activities. It emphasizes the importance of automation, risk management, and internal controls, which can be leveraged to create a cohesive and efficient compliance environment. This outlines key regulatory frameworks such as the International Financial Reporting Standards (IFRS), Sarbanes-Oxley Act (SOX), and other relevant legislation that govern financial compliance in growing enterprises. Additionally, it delves into the critical role external auditors play in providing independent assurance on financial reporting and compliance, as well as how organizations can cultivate positive and transparent auditor relationships. The highlights the challenges that growing businesses face, including managing evolving regulatory requirements, ensuring data integrity, and fostering effective communication between internal teams and external auditors. A systems approach offers several benefits, including improved consistency in financial reporting, enhanced risk mitigation, and better resource allocation. By automating compliance tasks and leveraging technology such as governance, risk, and compliance (GRC) platforms, enterprises can streamline their financial management and ensure continuous regulatory adherence. Moreover, maintaining a collaborative relationship with external auditors helps identify areas for improvement and enhances overall organizational transparency. Ultimately, this advocates for a holistic, systems-based strategy to financial compliance and auditing, suggesting that such an approach is essential for sustainable growth, long-term risk management, and maintaining strong regulatory standing as enterprises expand.

Keywords

Systems approach, Managing financial compliance, External auditor, Relationships, Growing enterprises

Citations

IRE Journals:
Azeez Odetunde , Bolaji Iyanu Adekunle , Jeffrey Chidera Ogeawuchi "A Systems Approach to Managing Financial Compliance and External Auditor Relationships in Growing Enterprises" Iconic Research And Engineering Journals Volume 5 Issue 4 2021 Page 326-345

IEEE:
Azeez Odetunde , Bolaji Iyanu Adekunle , Jeffrey Chidera Ogeawuchi "A Systems Approach to Managing Financial Compliance and External Auditor Relationships in Growing Enterprises" Iconic Research And Engineering Journals, 5(4)