Relating To Auditing Practices.
In addition to the draft audit report requirements, the bill stipulates that auditors must adhere to best practices when gathering testimonial evidence. Should the circumstances warrant recording an interview, auditors are obliged to inform the interviewees in advance that the session will be recorded and must supply a copy of the recording within five business days. This requirement serves to guarantee that individuals are aware of and consent to the recording of their testimonies, thus promoting ethical auditing practices.
House Bill 2420 relates to auditing practices within the State of Hawaii, specifically amending Chapter 23 of the Hawaii Revised Statutes. The bill introduces requirements for draft audit reports, mandating that auditors provide audited agencies with a draft report, which includes findings and recommendations, at least thirty days prior to conducting an exit interview. This provision aims to enhance transparency in the auditing process by ensuring agencies have advance notice of the auditors' conclusions.
Despite the bill’s intentions to improve auditing transparency and procedural integrity, there could be potential points of contention regarding the implications for auditors' discretion and the confidentiality of interviews. The mandate for advance notice and recording of session details might lead to concerns over the pressure it places on individuals being interviewed, as well as the potential chilling effect on candid discussions. Stakeholders might debate the balance between transparency and the need for informal, private dialogue during audits.