Most companies undergoing audit endure disruptions to their day-to-day business as they’re often required to answer a significant number of queries and fulfill multiple data requests.
This no longer has to be the case due to audit technology tools making it faster and more efficient for audit firms to request client data and have better management of their communications. Here at Jeffreys Henrys, we use Inflo, Karbon and CCH Pro-Audit and Circit which all contribute to the exceptional standard of audit provided to our clients. These tools allow us to communicate and track audit requests and deliverables, manage progress and have control of all bank and legal confirmation requests, and analyse up to 100% of transactions.
These tools make it easier for audit firms and clients to collaborate by providing functionality to securely send and receive documents through cloud portals. Additionally, this new breed of audit software can connect directly to accounting software. This automates data extraction which reduces the need for auditors to make additional requests that take up clients’ time as well as creating bottlenecks to audit assignments which are completed on time and to budget.
Time saved from automation also provides the potential for assignments to be delivered more economically and for audit staff to have the capacity to understand their audit clients’ business models to a greater extent.
New software technologies are resulting in annual audits generating valuable insights for clients to fine-tune their businesses and identify potential areas of risk. This differs greatly to traditional audit methodologies which rely on testing via a sampling basis. New audit tools such as Inflo can extract 100% of data using AI and machine learning and perform data analyses on all transactions as opposed to this only being done for transactions above the materiality level, or which are risky by nature. This output allows audit clients to focus on areas of risk which may require them to add additional controls to reduce the chance of fraud and limit the instance of transactions in specific categories being entered incorrectly.
Additionally, commercial benefits for clients include the ability to review an automated output of metrics covering financial KPIs and statistics. This gives companies the scope to benchmark themselves against competitors and pinpoint areas with potential optimisation.
These technological advances create unparalleled benefits for audited companies who can answer requests and assist in completing assignments with minimum disruption. Time saved from sending documents back and forth will enable audit staff to have more meaningful conversations about improving controls, minimizing risk, and improving company performance. This more rigorous approach, based on analysing 100% of data through automation technologies, will also help improve the image of audit by reducing the likelihood of audit failures.
New audit technology will help reposition audits as a genuine value-adding exercise for FDs and CFOs, rather than simply being viewed as a regulatory requirement.
PARTNER - AUDIT
PARTNER - AUDIT