A Devil's Advocate Audit is a thorough process used to scrutinize business and strategic plans. In determining the merits of a plan, a Devil's Advocate Auditor will employ analytical reasoning as well as subjective analysis in connection with issuing an assessment of the plan. The following are just a few of the considerations included in a Devil's Advocate Audit:
- What is the quality of data behind the assumptions?
- Which information is not presented but should be?
- How realistic are the assumptions?
- What are the analogs and antilogs of the plan?
- Is the financial modeling sound?
- Has the financial model been stress-tested?
- Are there hidden agendas among the key players?
- What are the key person risks?
- Are sufficient resources committed to the plan?
- Is the plan in accordance with the temperament of key constituents?
- How much precedential value should any near-term success be given?
- How portable is the concept and how scalable is the business model?
- Have compensation policies been modified to increase the chance of the plan's success?
- Is there sufficient commitment at senior levels to ensure a commitment to execution?
- What exogenous factors could derail the strategic plan?
- Are you prepared to tolerate many disappointments to learn what the business really is?