Over the years, I have consulted with clients to help them solve problems or show them how to solve problems on their own. When identifying problems, what kinds of information is appropriate to review? How does the consultant get this information?
The first rule I learned in audit was, 'The auditor will gain sufficient understanding of the environment such that they can conduct the audit and provide reasonable assurance that controls are functioning efficiently and are effective in preventing or detecting a material misstatement to the financial statemnts.' (SFAS No. 1)
Having vomited that out, my first rule is shut up and let the client do the talking. I ask questions only when they have exhausted themselves or have been unclear. I ask for a walk through of their problem or issue and try to observe the working components of the process as they currently happen and compare them to my expectations.
One of the benefits of being a consultant is having been in a lot of different environments. I have seen the wrong way to do something and the right way, it makes where I currently am so much easier to spot trouble.
Bottom line is to listen to the client, make your observations, evaluate the observations and compare them to both client discussions and personal expections. Using this provides a healthy basis for making recommendations.
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