The implementation and proper organization of the internal audit system greatly contribute to ensuring the effectiveness of business entities. In this article, we will discuss how to conduct the audit with the help of a virtual data room.
The role of audit procedure for the enterprise
At the present stage of development, the economy is reaching a qualitatively new level, due to the growth of production and the implementation of a set of measures to increase the profitability of enterprises. Internal audit is one of the types of internal control of business entities.
Internal audit is a system of monitoring and expert evaluation of the economic activity of the enterprise and its structural units to justify and make optimal tactical and strategic decisions. Internal audit solves the following tasks for the customer:
- studies the asset control system;
- checks the compliance of the current control with the company’s policy; analyzes risk situations and bankruptcy prevention;
- uses know-how to increase profits and efficiency of new technology,
- takes other measures to promote the development of the company.
Internal audit serves as a diagnostic tool in the management of the enterprise because internal auditors conduct an expert assessment of the processes taking place in the enterprise, assessing accounting policies, the correctness of registration of business processes, of data transfer to accounting registers, and then to reporting forms, activities internal control, which is carried out by structural units of the enterprise.
How to choose software for the audit?
Stereotypical audit operations and ordinary tasks occupy a significant share in the activities of any company. Today, there are tools designed not only to describe but also to standardize these processes, which in turn will make it possible to bring their solution to a common denominator, reducing the time for processing tasks, freeing up human and financial resources to work on more important projects. A virtual data room is an example of such a tool.
Auditing has its own specifics. Accordingly, in contrast to accounting programs, the requirements for audit software will be as follows:
- availability of advanced means of control of operations;
- increased flexibility;
- communication at the database level with accounting programs.
In addition to the basic requirements, audit software should have the following features: ease of development, speed, professional operational support from developers.
Virtual data room for smoothly audit
Data room is a cloud-based digital platform that allows auditors to collect, store, quick search, and access documents in electronic archives, combine them, as well as provide group work in the process of creating a document.
According to datarooms.fr, the software is designed to facilitate the comprehensive preparation of working papers and reports and consolidation. Data room Document Manager provides a system of folders to help track, manage, and organize the amount of information typically stored in audit files — worksheets, audit plans, audit programs, and checklists, memoranda, test balances, financial statements, auditors’ reports, and contact databases. data. The system also simplifies the process of exchanging information between team members, allowing them to work simultaneously in one document with a high degree of security and accuracy.
Data room spreadsheets, with their powerful computing, business graphics, word processing, and database management, have been widely used in audits. They are used:
- in compiling various analytical tables;
- in the implementation of analytical procedures, primarily related to the assessment of actual indicators of financial statements and analysis of the financial condition of the economic object being audited;
- in presenting the received information in a graphic form;
- in the creation of various working tabular documents, such as estimates, financial statements, etc.