1. The first step in the “communication contract” is for information to be conveyed timely. Loss (2000) recommends open communication lines. Auditors and auditees need to be open with each other so information will flow effectively between them so they will receive immediate feedback from each other. Auditors must communicate their audit objectives and what tasks will be accomplished so that auditees understand the audit purposes and how it will be beneficial toauditees.
2. The second step is to carefully listen before responding to what the other person is communicating or practice “active listening.” Auditors should allow auditees to finish their thoughts without interrupting, then, if needed, question auditees for clarification on points requiring clarification. This will demonstrate to auditees the auditor’s consideration and respect for what they are communicating. Defensiveness needs to be avoided in the audit process. Loss (2000) recommends utilizing positive statements, rather than accusatory statements, when communicating. Loss also suggests utilizing questions to clarify messages being exchanged to resolve any remaining uncertainties and further prevent misunderstanding.
3. Loss (2000) also suggests developing an environment whereby auditors will evaluate auditees’ comments or suggestions with a nonbiased attitude. When entering in to a conversation, auditors should maintain an open attitude by not pre-judging auditees before hearing what they are communicating. Auditors must not tune out auditees or important information might be missed.
The fourth rule of the communication contract is to agree to address concerns, clearly explaining the rationale behind auditor’s position. Loss (2000) believes these steps will improve the auditor’s relationship with auditees and support a higher quality audit.