In recent years, Quantum Services has acquired other inventory audit firms. Here are the sad but true facts and comments from store operators who used those firms. The story goes basically like this: prior to transitioning to Quantum, store operators were satisfied, even very happy with their audit service. What they didn’t understand, but came to understand, were the hidden risks they were exposed to.
I was happy with my audit service until Quantum raised the bar. Quantum reviewed the 29 auditors who had been auditing my stores on behalf of my previous audit firm:
Four of the auditors failed Quantum’s drug test
- Three more quit when they found out Quantum would test them for drugs
- Quantum discovered there were two convicted felons auditing my convenience stores
- Several more could not pass a simple productivity test
- Even more failed Quantum’s tests of accuracy of their counts.
All in all, of 29 auditors 15 (52%) should never have been working in my stores or come in contact with my employees and customers. Quantum also raised the bar and showed me what I could have been enjoying and expecting:
- Audit reports customized for my stores, better scheduling, Electronic Data Transfer, true reconciliations, and insights about my stores.
- Business Review Meetings to gain additional insights from the audit firm—which make my life easier.
- Training for my Store Managers for better management of the stores, more efficient preparation for audits, and enhanced shrink reduction.
- Reduced costs of my total audit expense.
The above story is similar to ones we encounter regularly. C‐store operators are unaware of the risks they take when they assume their audit service is conducting due diligence in hiring. They are unawareof what they should and could be receiving from their auditors to increase profits.
Most store operators do not understand the hidden and underlying risks of using an auditing firm that doesn’t do drug testing and background checks, and that doesn’t have resources to develop processes to ensure the accuracy of audits. These audit firms also lack the resources to leverage software and hardware to conduct/analyze key stroke entries. Few audit firms spend more than a handful of hours training their new recruits; they are more likely to give anyone who
shows up on time a calculator and have them start counting.
Yet, how could store operators know? After all, the felons, drug users, and inexperienced auditors look like any other auditor. And, store operators are rightly focused on other issues. Yet, without realizing it: they are increasing their risks and limiting their profits.
Are you satisfied with your current
audit service provider?
… Now that you know more,
is that even the right question?
Conducting due diligence in selecting an audit firm is a critical step to reducing risk and increasing profits.