two software apps to compare.
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.
more: how to equip field auditors | why your firm needs procedure manuals | digital tax workflow requires a system, not projects | survey: 60% of firms employ remote access tools | collaboration should tie in messaging
exclusively for pro members. log in here or 2022世界杯足球排名 today.
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, wolterskluwer/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 accountabilityplus that understand not only 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 wolterskluwer/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 wolterskluwer/cch’s engagement binder with knowledgecoach tools to see if a switch is warranted in the year ahead.
recommended actions:
- hire formal digital audit efficiency organization.
- document processes within audit procedures manual.