Hearing that your audit has “deficiencies” can sound alarming — but it’s not always bad news. In fact, most deficiencies are opportunities to strengthen your processes and build credibility with stakeholders.
Let’s unpack what an audit deficiency really means, why it happens, and how SC Audit helps clients turn findings into value.
What Is an Audit Deficiency?
An audit deficiency occurs when the evidence or documentation supporting a transaction, control, or disclosure is incomplete, inconsistent, or missing.
Examples include:
- Missing signed agreements or invoices.
- Weak segregation of duties.
- Unreconciled balances.
- Outdated accounting policies or manual errors.
- Deficiencies don’t always imply wrongdoing — often they reveal process or oversight gaps.
Common Causes for audit deficiencies
- Rushed year-end closings that skip reconciliations.
- Poor documentation culture (no signed minutes, incomplete audit trail).
- High staff turnover, leading to knowledge loss.
- System migrations where historical data isn’t properly validated.
Why You Shouldn’t Panic
A good audit identifies issues early — before they escalate into compliance breaches or financial losses.
Addressing findings promptly demonstrates management accountability and builds investor confidence.
🛠️ Remember: The goal of an audit is continuous improvement, not punishment.
How to Respond to Audit Findings
- Review each finding calmly and understand its root cause.
- Assign responsibility — who will correct or monitor the issue?
- Set a timeline for corrective action and follow up with your auditor.
- Update policies or controls to prevent recurrence.
- Communicate improvements to your board, funders, or stakeholders.
SC Audit’s Approach to Continuous Improvement
We see audit findings as value-creation moments.
Our reports include a practical Management Action Plan, helping clients prioritise fixes and measure progress before the next audit cycle. This proactive approach means fewer surprises, smoother audits, and stronger financial systems over time.
Want to turn audit findings into strategic advantage? Talk to SC Audit about our post-audit improvement program and risk health checks. SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.