Exit Interview

An audit without an exit interview is like a book without the final chapter. The Exit Interview wraps it up. Like the DOO says, operations, employee duties and other topics as needed were discussed. No new or additional operations were discovered. But what many auditors may not understand is that there is more to the Exit Interview than those few comments. The results of the variance spreadsheet should be reviewed with the insured and the insured's input is very valuable and should be noted. In fact, the insured's comments can change the outcome of an audit all together.

Now, often times an auditor may just have enough time at audit to input the payroll, the quarterlies, ask the insured about the ownership and other locations or entities that they have, and then run out the door to the next audit appointment. However, the Exit Interview must still be conducted with the insured; so just call back.

One example of a call back to the insured may go something like this:

"Upon further review, I've noticed that there was a decline in the wages during the audit period, for restaurant employees, but an increase in clerical wages. Why do you think that is?"

Auditor takes down notes from the insured:

• John Smith stated that their business has been steady for the audit period and he doesn't readily know about a decrease.He states that some of the restaurant employees have been cross training in the office to perform some clerical duties when the bookkeeper goes out on maternity leave.

• He's had the hours that the restaurant employees have put into training in the office charged to office on his payroll reports.

Wow, a mistake has just been avoided as the auditor discovers that the 3 part time names assigned to clerical are actually restaurant employees (included in a lump sum line on the worksheet). The insured knew to segregate the payroll by department, but didn't know the interchange of duties with 8810 is not allowed.