Stephen Coates - stephen.coates@egp.vn
Stephen Coates is an independent professional who provides real clear insight on matters affecting governance, risk, and compliance professionals, and internal auditors.
What is Automated Audit Management Software?
Data analytics and continuous controls monitoring are not new concepts. Now Internal Auditors and business units have Automated Audit Management Software that speeds up the processes of preparing for an internal audit, considering scheduling, steps to complete to conduct the audit, and required reporting on internal audit outcomes. Using an automated tool ensures accuracy and consistency.
Internal Audit budgets can be difficult to estimate and manage. Chief Audit Executives (CAEs) should look for opportunities to use internal audit accelerators, that is tools and/or techniques that help support the procedures internal auditors will be performing. Using an automated tool can increase the efficiency and effectiveness of the audit.
CAEs can use an automated audit management software tool to do the same internal audit in less time or do more detailed audit procedures in the same amount of time. Many automated audit management software tools require an investment, so the CAE should carefully consider the cost/benefits of any solution prior to investing in a tool.
Electronic work-paper management can be very useful where teams of internal auditors are working on the same internal audit at the same time, or the program of internal audits contains many reviews and assignments that utilize shared resources. Automated solutions provide centralised management and retention of work-papers, audit workflow, version tracking, electronic sign off, resource scheduling capability.
There are several vendors in the marketplace that offer these tools. It’s important to consider the functionality of the tool. For example, can it support multiple simultaneous audits? Prior to implementing any tool, the audit functional requirements should be defined. Perhaps more important, however, is the content that is provided with the tool. Does it contain suggested audit procedures or control activities? CAEs will certainly need to customise whatever knowledge base is included with the tool, but it can provide a significant head start.
What are the Benefits of Automated Audit Management Software?
Benefits of automated audit software management tools include:
1. Integrated working for large internal audit teams is facilitated by automated audit software management tools. The ability to schedule resources across internal audit assignments, allow necessary time for training and professional development, and ensure maximum return from resources applied are all benefits of using an automated tool. Automated workflow rules make sure that activities related to progressing and completing internal audits occur as and when required, with automated reminders driving internal audit behavior.
2. Easy audit template creation improves internal audit efficiency by allowing users to create internal audit templates for reuse across many internal audits. The template process allows various types of checklists with preloaded questions to be stored. This expedites the preparation necessary to conduct the internal audit. Users can add questions as needed on an ad-hoc basis.
3. Internal Audits happen in the auditee’s workplace, out on the shop floor, in the warehouse, and all over the organisation, and even in alternate jurisdictions. The mobility of automated internal audit software management tools mean the Internal Auditors can record meeting outcomes and field-work data more economically while they are in the field conducting the internal audit.
4. Recording of information as close to the capture point improves the quality of audit evidence obtained. Mobility allows auditors to enter each internal audit’s evidence into their tablet in real time, no matter where they are, with visibility to internal audit supervisor’s back in the internal audit office. Mobile internal auditing cuts down on the paperwork involved.
5. The ability to integrate the internal audit management system with other organizational systems like risk, quality and compliance helps to gain better visibility and control into processes. Outcomes from internal audits can be directly loaded to first and second line of defence workgroup’s software systems for corrective action and follow- projects for managing change in processes or products, and to training events to ensure that employees are trained. This integration provides the organization with a clear line of sight from the audit to all the processes affected by the findings.
Next Steps
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Stephen Coates CIA CISA CGAP CRMA PFIIA FGIA is known globally for his work with the internal audit profession, and lives with his family in Vietnam and Australia. In 2022 Stephen was awarded the Bob McDonald Award from the Institute of Internal Auditors - Australia for his outstanding service to the internal audit profession. He provides real clear insight on matters affecting governance, risk, and compliance; and internal audit. Stephen is available to speak live at your event from small boardroom events to jam-packed conference arenas. He is available to travel anywhere in the world in person or to participate virtually.