Challenges and Possible Solutions Faced by General Conference Auditors in the Southern Asia-Pacific Division of Seventh-day Adventists

Abstract

Aim/Purpose: This study examined the challenges faced by General Conference Auditing Service (GCAS) auditors in the Southern Asia-Pacific Division (SSD) during financial audits. The objective was to identify key obstacles that hinder the efficiency and accuracy of audits, assess client compliance with financial regulations and international standards, and propose solutions. Given the essential role of financial audits in ensuring transparency, accountability, and regulatory compliance, it is crucial to understand these challenges and explore ways to improve auditing processes.

Introduction/Background: Auditing is a key component of financial governance, ensuring an organization’s compliance with regulations and maintaining financial integrity. However, audits are often hindered by various operational, technological, and procedural difficulties. Auditors encounter issues such as inadequate documentation, outdated financial systems, and communication barriers that impede the ability to conduct thorough inspections. These challenges are particularly pronounced in regions with inconsistent financial management practices and regulatory adherence. This study explored the experiences of auditors in the Southern-Asia Pacific Division (SSD), highlighting recurring issues and suggesting strategies to enhance audit quality and efficiency.

Methodology: A qualitative research approach was used to gain an in-depth understanding of the challenges auditors face. Semi-structured interviews were conducted with ten General Conference Auditing Service auditors, focusing on three areas: background information, the financial audit process, and specific auditing challenges. The study examined client compliance, technological limitations, and external factors affecting audit effectiveness. This approach allowed for the collection of real-world experiences, providing valuable insights into audit processes in the SSD.

Findings: The study identified several critical challenges. One persistent issue was unresolved audit recommendations from previous years, leading to inefficiencies and repeated financial mismanagement. When past recommendations are not implemented, the same issues resurface in subsequent audits, making it difficult for auditors to provide accurate and efficient appraisals. Another significant challenge was the presence of insufficiently finance personnel in organizational clients. Many finance teams lacked the necessary expertise to maintain proper financial records and comply with audit standards, resulting in errors and inconsistencies that slowed down audit processes. Furthermore, incomplete documentation frequently hampered auditors’ ability to conduct thorough evaluations, as missing financial records created gaps in financial reporting and compliance verification.

Technological limitations also played a significant role in complicating the audit process. Many organizations rely on outdated accounting systems that do not meet modern financial reporting requirements, making it difficult for auditors to locate data efficiently. Auditors also face difficulties due to inconsistent client financial practices, requiring them to navigate varying record-keeping and reporting methods. Communication barriers pose another challenge, especially in regions where English is not widely spoken. Language differences often lead to misunderstandings, making it harder for auditors to obtain accurate financial information. While cultural differences have a relatively small impact, they still influenced certain aspects of client interactions and audit engagements.

Despite these challenges, auditors demonstrated resilience by leveraging professional networks, adopting technological workarounds, and tailoring communication to suit their clients’ environment.

Contribution: This study contributes to the broader understanding of the operational, technological, and cultural factors that influence global auditing practices. By identifying specific barriers to effective audits, it provides insights for auditors, financial professionals, and regulatory bodies seeking to improve audit quality and compliance. Strengthening internal controls, improving client training, and modernizing technology are critical steps to addressing these challenges. Implementing these recommendations can help organizations achieve greater financial transparency, regulatory compliance, and operational efficiency, ultimately enhancing financial governance in the region.

Recommendations: To enhance financial audits, the study recommends key strategies. First, finance personnel should receive comprehensive training to improve their knowledge of financial reporting and compliance, reducing errors and inefficiencies. Additionally, organizations should upgrade their accounting systems with modern financial software that meets international standards, ensuring that auditors can quickly access accurate data, simplifying the audit process. Addressing language barriers is also crucial—offering translation services, language training, or hiring bilingual staff could enhance auditor-client communication. Lastly, organizations must take corrective action on past audit recommendations to prevent recurring issues. Strengthening follow-up mechanisms would support long-term compliance and improve financial governance.

Research Limitations: This study had certain limitations. The small sample size of ten auditors restricts the generalizability of its findings. Additionally, the study focused specifically on the SSD region, meaning that the challenges identified may not fully represent auditing experiences in other areas. Another limitation was that the study primarily captured auditors’ perspectives rather than insights from clients or regulatory bodies. Incorporating client viewpoints could provide a more comprehensive understanding of the factors influencing financial audits. Future research should address this gap by including a broader range of stakeholders.

Future Research: Building on this study’s findings, future research could explore client perspectives on challenges they face during audits, as this may provide a more holistic understanding of audit processes. Additionally, further studies could assess the impact of emerging technologies such as artificial intelligence on financial auditing. These technologies can potentially streamline processes and improve accuracy. Longitudinal research is recommended to evaluate long-term effects of audit recommendations on financial compliance and operational efficiency. By tracking changes over several years, researchers can determine whether proposed solutions effectively address persistent audit challenges. This study lays a foundation for further research into improving audit practices and ensuring that financial audits contribute to transparency, accountability, and sound financial management in SSD and beyond.