Interim work and client cooperation contribute to early completion of the audit;

              Interim Work and Client Cooperation Contribute to Early Completion of the Audit
BY KARL A. HERRHAMMER PARTNER, NEW YORK OFFICE
Presented at the 25th Anniversary Meeting of the lnstitut Der Wirtschaftspriifer, Diisseldorf, Germany — October 1956
INTRODUCTION Early completion of the audit and prompt delivery of the audit report are worthwhile goals. Timely information contributes import­antly
to considered judgments. What are some of the reasons your clients want their financial statements certified as early as possible?
1. Early completion of the audit shortens the period following the
close of the year during which the management may be uncer­tain,
or possibly doubtful, as to the reasonableness of its finan­cial
statements.
2. Early completion of the audit gets your recommendations for
changes in plans or methods of business operations to the man­agement
promptly so that it can secure the benefits of your re­commendations
without delay.
3. Timely information is appreciated by banks and credit grantors
from whom the client may be seeking new financing, and thus the terms of such financing may be more favorable.
4. Early completion of the audit and release of the report improves
shareholders' relations and public relations. It inspires con­fidence
in the management. Shareholders, and others interested in business affairs, welcome information on operating results promptly after the close of the year. In summary, if I may quote one of our favored expressions: Get it to them while it's hot, and get it to them before the information has become ancient history.
How, in this day of relatively large and complex business opera­tions,
is an early completion of the audit achieved? It is accomplished largely by extensive interim work, that is, by completing as much as possible of the audit before the year-end. And I contend further that in­terim
work does contribute not only to an early completion of the audit, but that it produces other benefits to your client as -well as to your own organization. For example:
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