'They're Here...' How to Survive an Audit

Opiela, Nancy
November 2002
Journal of Financial Planning;Nov2002, Vol. 15 Issue 11, p52
Academic Journal
This article offers advice on audit preparation and survival. The first impulse for many planners who had advance notice of the audit was to reach out to colleagues who had been through an audit. In addition to moral support, these planners offered the soon-to-be-audited answers to their most pressing questions. Most important in the preparation stage, however, is to allocate the time necessary to gather all the information requested in advance. And, in concentrating on these documents, do not overlook a quick fix. On audit day, planners say it is important to set an appropriate professional tone. Of course, the key to a successful audit happens long before the response to the knock at the door. For many smaller firms without compliance managers, the responsibility for staying up-to-date with changing regulations and requirements falls on the planner. Some planners use consultants to conduct mock audits. It is non-threatening. In addition to having a compliance manager, the best way to be sure is with a trial run. With the down market providing a backdrop, many planners have noticed a recent focus on consumer protection. In general, planners seemed to appreciate the thoroughness of the audit and none described the experience as adversarial. In fact, in many cases, planners report that their business was stronger as a result of the experience.


Related Articles

  • Compliance Policy Manual: Is Yours Up to Date?  // Journal of Financial Planning;Jul/Aug2008 Supplement, p30 

    The article discusses the importance to registered investment advisors of having a manual on compliance policy. Such manuals were made mandatory by the U.S. Investment Advisors Act of 1940. Fortunately, the Financial Planning Association has published a document that can help professionals...

  • Scoring A+ for compliance – Part 2. Derham, Paul // Money Management;9/19/2013, Vol. 27 Issue 36, p20 

    The article discusses part 2 of compliance audit which focuses on recruitment of financial planner and compensation arrangements. Reports from the Australian Securities and Investments Commission (ASIC) reveal that a poor quality appointment process might result in a firm that employs not...

  • Do cheap dealer groups spell bad compliance? Pokrajac, Milana // Money Management;4/11/2013, Vol. 27 Issue 13, p1 

    The article focuses on the risk of having an insufficient compliance resources of groups that offer low-cost services to financial planning practices.

  • Doing Good and Doing Well. Grant-Smith, Linda // Financial Planning;Oct2015, Vol. 45 Issue 10, pA13 

    The article explains the attributes that help women excel as Certified Financial Planners (CFP). It notes the essential qualities that CFP professionals must have to guide clients including integrity, compassion, and competency. It cites that the empathy and creativity innate in most women make...

  • The Global Finance Men: Who They Are, How They Work.  // Time;5/14/1965, Vol. 85 Issue 20, p111 

    The article offers information related to the role of the investment advisors to global economy. It states that investment advisors would meet at the conference tables to make decisions that could affect the fate of governments in casting their appraisals on the economy of different countries....

  • 'Soft Dollars' and Other Brokerage Arrangements. Lins, Gerald T. // Journal of Financial Planning;Feb1998, Vol. 11 Issue 1, p89 

    This article presents information on soft dollars and other brokerage arrangements. Over the past year or so, the issue of "soft dollars" has been the subject of increased media and regulatory attention. The term is not specifically defined in any rule or statute, and at times has been used...

  • Have We Lost Our Desire to Plan? Bradley, Susan K. // Journal of Financial Planning;Sep2002, Vol. 15 Issue 9, p40 

    This article provides a sense of how financial planners use scenario planning to help their clients make their dream come true. The planning profession has access to software that will allow some version of what is called scenario planning. They have the technology to do the exterior work. The...

  • The Evolution of Financial Life Planning: More than Art. Walker, Lewis J. // Journal of Financial Planning;Sep2002, Vol. 15 Issue 9, p46 

    This article focuses on the evolution of the financial life planning industry as of September 2002. Financial life planning may seem to be the new thing, but it is not. The concept is more evolutionary than it is revolutionary. Consider the 'age-based continuum' of financial planning. For a...

  • It Was Greek to Me. Vessenes, Peter M. // Journal of Financial Planning;Nov2002, Vol. 15 Issue 11, p46 

    This article presents the author's response to a letter about an article in the May 2002 issue of the Journal of Financial Planning asking for a description of the actual logistics of how a financial planning or financial services practice is organized and run. Let us start with how you run your...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics