A fluid pathway for US CPA to escape audit risksby Miles Education Make an impact. Lead,Excel, Serve
The covid-19 pandemic brought in a new set of innovations as it urged financial and accounting professionals with global certifications to deploy new-age technologies to expedite and ease auditing processes right from their comfort zones while working remotely, but this flexibility brought home new challenges and risks. To mitigate challenges and risks through hybrid audit approaches.
Global professionals like US CPA and CMA need to follow a hybrid approach in a technologically advanced business environment while setting up appointments with clients as it cannot alone happen within closed doors but need to travel to understand the needs in person.
Follow a Single Source
Whether it is video conferencing, software, PDF transfer, e-audit statements or any other auditing information powered by digital tools and technology carries a load of risks like data and security breaches due to multiple sources which invalidate the financial and auditing information, documents, or statements that reputed CPA/CMA professionals release in the interest of the stakeholders and investors involved in the business. To overcome this risk, auditing firms need to hire US CPA/CMAs who are validated with expertise in forensic accounting and can probe into the events to unearth frauds and crimes through systematic digital skills. This also signals the auditing professionals to source information from a single regulated source rather than relying on third parties.
While dealing with banking or financial information, CPAs and CMAs need to be extra careful in authenticating documents and signatures in a hybrid environment. In a digitally native era, data can be manipulated which leads to haywire analysis. Auditors need to work closely with banks to get access to primary documents, signatures, and data to defend the reputation of the company or businesses. While extracting financial data, auditors need to double down on decisions whether it is original or fake by deploying strategic review models and ICT to improve the quality of audits.
Time & Efficiency Imperative
While conducting remote audits, US CPA/CMAs may tend to slip on deadlines or dilute efficiency due to a lack of in-person meetings. Personal interaction is one of the powerful tools for auditing and finance professionals as it helps them focus on the agenda and requirements of the clientele without distractions that are found in-doors like - pet jumping on your laptop, power outage, infrequent network supply, awkward pauses, poor voice quality, or family engagements. Out-of-sight means out-of-mind if the auditor is not present to meet the client to provide the incentive of information and documents and the attention he/she needs then it means low-quality service.
Lack of Autonomy
Let’s imagine a situation where a company is looking for a US CPA/CMA specializing in supply audits. This job requires him/her to be on-site which otherwise is difficult a task that can be done remotely. What if the auditor has to examine the process or systems physically? So following a fluid method reduces risk and loss for the companies and moreover, physical presence makes it more efficient for an auditor to drive more value than through checking it through screen-driven interactions. Remote auditing removes the freedom and autonomy of auditors but what in-person audits can do is march out black swan events and drive performance in companies.
Finally, the bottom line of auditors like US CPA and CMA is to deliver audit quality and assurance, and to keep this up, you need to keep processes and systems fluid to deliver impact.
Created on Sep 21st 2022 06:21. Viewed 94 times.