12 Nov Is Auditing Really That Important?
The bottom line, the answer to that question is an emphatic “Yes, Yes, and Yes.” While most E&O Plus agencies have good practices and procedures, that is not enough. The key unknown is “To what degree are the staff following the stated procedures?” The consistency issue has probably been referenced in over half of the E&O Plus blogs (this is # 245), and for good reasons. It is one of the most critical issues. Allowing staff members to choose how they want to do things should not be tolerated. I have encountered some agencies in my lifetime that didn’t feel a need to have documented procedures. Their excuse – “My staff are veterans; they know what they need to do.” Sorry, I am not buying it.
Thus, the underlying value of auditing is to measure to what degree staff are performing their tasks as expected and consistently. Without some degree of auditing, the level of consistency is probably a guessing game. And with inconsistency, the potential for an E&O claim to develop increases.
While the goal is consistency, sometimes, identifying inconsistency can be somewhat of a good thing. Possibly, not all staff knew the expectations, so this presents opportunities for further training. A “failing” audit score is not necessarily a bad thing. What is done with the audit score is heavily the key. The “failing” audit scores will probably continue if nothing is done. Addressing the audit score with the specific staff and implementing action plans should lead to improvements in subsequent quarters. This is one of the main reasons the E&O Plus program heavily advocates quarterly auditing. As Angie (one of the other reviewers) commonly states, “Green is good, yellow is bad.” Said another way: “Consistency is good, inconsistency is bad.” Be sure to address the reasons behind “the yellow.”
A greater sampling of files should be conducted for newer employees or in areas where previous results have not met expectations. Auditing should be done on newly acquired firms to determine what issues must be addressed. Some firms also audit all new business to ensure it is correct from inception. Be sure to include all employees (as best possible), including veterans.
As noted, to reap the true benefits of auditing, there should be a review to understand those issues better so that action plans can be developed that should result in improvement. When the results don’t improve, this indicates a significant issue/problem that needs to be analyzed and understood. Divisions that are not achieving improvement are more likely to experience some E&O activity at some point.
Is auditing really necessary? Is it really that important? Yes, it is. It is one of the most important undertakings an agency should pursue. If you need any assistance or input on auditing, don’t hesitate to ask your reviewer. We are here to help.