compare thomson reuters and cch to see whether you need to switch.
by roman h. kepczyk
quantum of paperless
traditional audit practices use the previous year’s audit programs and processes updated for the current year as their standard operating plan.
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eventually this can lead to a significant amount of “overauditing.” breaking this habit is difficult as every level of staff has been trained in the manual processes and falls back on them when deadlines approach.
many firms have rightfully transitioned to digital “document container” applications such as caseware, cch engagement and thomson reuters engagement cs. not all of these firms have changed their approach to reviewing progress on the audit and the financial reporting on a computer screen in a digital format. using only the computer and digital files requires a radical change in every aspect of audit production and it is recommended that firms bring in someone from the outside to streamline audit production with digital tools.
this can be accomplished by hiring a manager with extensive paperless auditing experience from another firm or using audit efficiency consulting organizations such as thomson reuters’ auditwatch, auditsense and accountability plus who not only understand risk assessment but the optimization of digital audit tools and processes. these groups have documented best practices for every step of audit from the rollover of the previous year’s financial reports through the digital delivery of the final report, all in an electronic format.
studies have shown firms experiencing 10 percent or more increased productivity immediately, which usually covers the firm’s initial investment.
by documenting these procedures as part of the firm’s departmental procedures manuals this information will be available to all new hires for training, as well as being made available to personnel in the field, which further promotes adherence to firm standards. these groups can also discuss the advantages of having work programs that integrate directly with the engagement applications.
both cch and thomson reuters have made significant strides in integrating tools into a single comprehensive audit suite, which the cpafma 2017 paperless benchmark survey found 60 percent of the firms had adopted. firm audit departments should compare the capabilities of thomson reuters’ web-based advanceflow audit container integrated with ppc smart practice aids against cch’s engagement binder with cch knowledgecoach tools to see if a switch is warranted in 2018.
recommended action: hire formal digital audit efficiency organization and document processes within audit procedures manual.