The "Hawk-Eye" Index: Auditor Rigor

The "Hawk-Eye" Index

Do you want an auditor who finds everything, or one who focuses on the big picture? While all auditors follow the same standards, their finding rates can vary.

The Data

• KPMG LLP: Shows an extremely high finding rate in our dataset. This could indicate a focus on very complex, high-risk entities, or a very rigorous approach.
• RSM US LLP & Eide Bailly LLP: These firms have higher than average finding rates (~16-22 weaknesses per 100 audits).
• Plante & Moran: Interestingly, despite high volume, they have a lower finding rate relative to that volume (~11 per 100 audits).

The Takeaway: Know your auditor's style. A rigorous auditor helps you improve your systems, but be prepared for a thorough examination.

Understanding the difference between a Material Weakness and a Significant Deficiency is crucial when interpreting these stats.