One of my junior auditors just caught a $45,000 demand billing error on a Xcel Energy account that our senior auditor missed completely. The client is thrilled but now I'm questioning our QC process. How do you handle situations where the trainee outperforms the mentor? Don't want to undermine anyone but this is a significant find on a major manufacturing facility here in Denver.
Junior auditor made $45K error - how to handle?
Carl, that's actually a good problem to have! Here in Dallas with TXU, I celebrate these wins publicly. Shows the whole team that experience isn't everything and fresh eyes can spot things we miss. The senior auditor should be proud they trained someone well enough to catch their mistake. Use it as a teaching moment for everyone.
I agree with Marcus. Had something similar happen with an Entergy New Orleans account last year. The junior auditor spotted a transformer loss adjustment error that saved the client $28K annually. Rather than feel threatened, the senior auditor used it to revamp our entire review checklist. Now we have a much more robust QC system.
The key is creating a culture where finding errors is celebrated regardless of who finds them. Here with Ameren Missouri, I've implemented peer review sessions where junior and senior auditors review each other's work. Ego has to take a back seat to accuracy. Your junior auditor should be commended and the process should be examined to prevent similar oversights.
What type of demand error was it? On IPL accounts here in Indianapolis, I've seen juniors catch contract demand vs billing demand mismatches that experienced auditors gloss over because they assume the utility got it right. Sometimes that beginner's skepticism is exactly what we need.
Greg, it was exactly that - a contract demand issue. The facility had reduced their contracted demand two years ago but Xcel kept billing at the old level. The senior auditor saw the demand charges and didn't question them because they looked consistent month to month. The junior auditor actually read the service agreement and caught the discrepancy.
That's a classic example of experience bias. We get so used to seeing certain patterns that we stop questioning the fundamentals. Here with APS, I now require all auditors - junior and senior - to verify contract terms on every large commercial account. Takes extra time but catches exactly this type of error.
Sarah's right about experience bias. I've been doing this for 15 years and sometimes I autopilot through routine accounts. Having junior auditors ask 'stupid' questions keeps us all sharp. In this case, I'd use it as a training example for the whole team - show how asking basic questions can uncover major savings.
Walt makes a great point about 'stupid' questions. I tell all my trainees that there are no stupid questions in utility auditing - only expensive assumptions. This $45K find proves that point perfectly. The senior auditor learned something too, which makes this a win-win situation for everyone involved.
Derek's absolutely right. Here in Tulsa, I've started rotating junior auditors through different senior mentors every few months. Prevents them from inheriting any one person's blind spots and gives them exposure to different approaches. This situation Carl describes is exactly why cross-training is so valuable.
All great points here. The bottom line is that $45K error just paid for a lot of junior auditor training! I'd document the process that led to the find and incorporate it into your standard procedures. Sometimes the student becomes the teacher, and that's exactly how our profession grows and improves.