Auditing or Consultative: What’s The Difference?

Auditing a retail or distribution network and consultatively working with the network are two distinct approaches, each serving different purposes and having different focuses. Here are the key differences between the two:

Purpose and Objective:

Auditing: The primary purpose of an audit is to assess and verify compliance with established standards, policies, and regulations. Audits are often conducted to ensure that the organisation is adhering to legal requirements, industry standards, and internal procedures.

Consultative: Consultative work involves collaborating with the retail network to provide advice, guidance, and recommendations. The focus is on improving processes, enhancing performance, and achieving operational goals rather than solely ensuring compliance.

Nature of Engagement:

Auditing: Audits are typically formal and structured processes systematically examining records, processes, and activities. Auditors follow predefined criteria and check for compliance with established standards.

Consultative: Consultative engagements are more dynamic and interactive. They involve discussions, brainstorming sessions, and collaboration to identify areas for improvement and implement positive changes.

Relationship Dynamics:

Auditing: The auditor is often an external party, providing an objective and impartial evaluation of the network’s operations. The relationship is more transactional, focusing on the evaluation of compliance.

Consultative: Consultants often work closely with the retail network, developing a more collaborative and ongoing relationship. The consultant serves as an advisor, working with the network to understand challenges and help implement solutions.

Focus Areas:

Auditing: Audits typically focus on specific areas such as financial records, operational processes, people competencies, facilities, equipment, and regulatory compliance. The emphasis is on identifying deviations from established standards and agreed ways of working.

Consultative: Consultative engagements have a broader scope and can cover many areas, including planning, process improvement, employee development, and customer experience.

Feedback and Recommendations:

Auditing: Auditors provide feedback on compliance, highlighting areas of non-compliance and potential risks. Recommendations may be limited to remedial actions to address identified issues.

Consultative: Consultants offer constructive feedback and provide recommendations for improvement, innovation, and growth. The focus is on enhancing overall performance and achieving operating and strategic objectives.   

The Conclusion:

In summary, while auditing is primarily concerned with ensuring compliance and identifying areas of non-compliance, consultative work involves a more collaborative and proactive approach to improve overall performance and achieve commercial goals within a network.