today’s three essential audit tools

audit and compliance issueswithout them, you’re still in the stone age.

by roman h. kepczyk
quantum of paperless

the advent of today’s audit “document container” applications has transitioned every aspect of audit production into a digital format.

more: firms need ‘best practices’ manuals | telling clients: go digital, or just go | survey: 72% of firms annotate pdfs | survey: 67% turn client documents into pdfs | how 53% of firms use intranets to work smarter | check your bandwidth
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the key to successfully using these engagement applications is to make sure your personnel have the optimal equipment with them to work digitally. this includes:

  1. multiple monitors,
  2. image capture equipment and
  3. remote communications capabilities.

firms have experienced how dual monitors improved overall productivity within the office and it is time for auditors to take that advantage into the field as well. according to the cpafma 2017 paperless benchmark survey, 62 percent of firms were already carrying a second monitor in the field and it is expected that this percentage will increase as accountants also use their tablets as an additional screen.

as the tax department upgrades to triple or dual oversize monitors, older flat-panel monitors are available for the audit team to take into the field or preferably portable units are purchased such as lenovo’s lt1421, asus mb169b+ and hp’s u160 and elitedisplays. firms should always pilot a mobile monitor before buying in volume as firms that purchased budget monitors in the past found them to have inadequate brightness options, be too bulky to transport and have poor screen clarity.

while it is preferable to have clients transfer files electronically to the firm, a number of supporting documents are not available to the auditor until they are onsite and meeting with the client. for those documents that are only in a physical format, the audit team should have access to a portable scanner that can capture images at a speed of at least 10 pages per minute. traditionally, firms have standardized on the fujitsu scansnap ix series, which have been cost-effective and portable. one problem is that the scansnap has not been “twain” compliant. twain capabilities allow a scanned image to be edited as a document rather than as an image and today’s audit binder tools can import twain documents directly into the index. this has led a shift to firms either buying the more expensive fujitsu fi series scanners or to other portable scanners such as the canon dr series that are twain-compliant.

finally, it is critical that firms provide internet connectivity to all audit team members so that they can

  • access firm resources,
  • synchronize their audit binders and
  • enter time and expenses daily.

often, clients provide audit teams with a usable internet connection. when clients provide access it is a good idea to outline the requirement parameters in the engagement letter.

in any audit engagement of more than a few days, firms need to provide alternative access through the digital cellular networks if the client cannot provide usable access. standalone mobile “hotspots” or those configured via today’s smartphones provide internet access at speeds of well over 1mbps, which is effective if the firm has remote access through a cloud-based application, a direct link to their office workstation (via remote desktop access), or they can use a more robust solution such as citrix or remote desktop server for a larger number of users. current smartphone “hotspots” and the mifi devices allow up to five auditors to effectively share one connection.

recommended action: outfit audit teams with appropriate digital tools and training to work effectively in the field.