Remote Audits: Conduct Digital Consolidated Financial Statements Efficiently and Securely – with 5FSoftware
Remote Audits: Conduct Digital Consolidated Financial Statements Efficiently and Securely – with 5FSoftware
In the digital business world, remote audits are becoming increasingly important – a development that has been further accelerated by the coronavirus pandemic. The ability to conduct audits virtually via remote inspection opens up completely new perspectives for companies and auditors. But what exactly is behind the term “remote audits” and what advantages do they offer? This blog post uses the example of digital consolidated financial statement audits with the cloud platform from 5FSoftware to shed light on how law firms can increase their efficiency in audits through remote audits while maintaining the highest security standards.
Definition of “Remote Audits” – Remote Audits (Remote Inspections) in Auditing
A “remote audit” is an audit procedure that is carried out remotely without the auditor being physically present on site. An audit is a systematic review of whether certain standards, guidelines or requirements are met. The use of communication and information platforms makes it possible to carry out audits remotely in a resource-saving manner. Traditionally, audits were carried out on site at the client’s premises.
In auditing, remote audits can be used, for example, in annual and consolidated financial statement audits. The use of suitable tools enables the auditors to carry out the necessary audits.
Important: In some cases, especially for complex or extensive audits, a physical presence of the auditor on site may be required – this depends entirely on the specific requirements of the audit and the regulatory requirements.
Why law firms should take advantage of remote audits – an overview of the benefits:
From more efficient workflows and flexible working conditions to the scalability of audits – law firms benefit from a whole range of advantages when carrying out audits remotely:
Requirements for Successful Remote Audits – and Solutions from 5FSoftware:
5FSoftware offers a cloud platform for secure data exchange and effective communication between law firms and clients, via which remote audits can be carried out simply, securely and efficiently:
Requirement:
Tools for the digital execution of remote audits
In any case, the law firm needs digital tools that enable audits to be carried out efficiently and in a structured manner. The tools should be suitable for communication and collaboration in order to be able to interact with clients and other process participants.
Solution:
For auditors, 5F provides special tools for carrying out digital consolidated financial statement audits and balance confirmation campaigns. These are supplemented by digital tools such as project rooms for secure document exchange and communication as well as interactive checklists for collecting documents. An additional module also enables the electronic signature of documents directly in the 5F platform.
Requirement:
Secure transmission channel for sensitive data
Since confidential information and sensitive data are transmitted during remote audits, a secure data transmission channel is of crucial importance (in addition to a stable and trustworthy internet connection).
Solution:
The 5F platform offers the highest security standards for those bound by professional secrecy and was explicitly developed for the transmission of sensitive data. The protection of the transmitted data is therefore guaranteed at all times. 5F is “made and hosted in Germany”, GDPR and GoBD compliant. Furthermore, all work processes within the platform are completely logged via audit trail.
Requirement:
Flexible access to electronic documents
In order to carry out remote audits, law firms must have access to the electronic documents of their clients. A well-organized and structured electronic data management system facilitates access to the required documents.
Solution:
5F provides a clear working environment in which documents can be digitally exchanged, structured and organized. Via the 5F cloud platform, law firms and clients have access to all relevant documents at any time and from any location. In addition to an audit-proof storage of documents, 5F offers interfaces to various document management systems (DMS).
Requirement:
Competencies of the law firm employees
The employees of the law firm must have the necessary competencies and knowledge to carry out remote audits. This includes not only technical know-how in handling the tools used, but also the ability to plan, organize and carry out the audit process virtually.
Solution:
5FSoftware regularly conducts training courses with law firm employees, in which all the necessary skills for the successful use of the 5F platform are specifically taught. If required, the focus can be placed on the implementation of remote audits.
The Digital Consolidated Financial Statement Audit with 5f – Remote Audit in Two Steps:
Step 1: Verification of the Sub-Area Auditors
In the first step, the sub-area auditors are invited and verified. This means that they receive access to the tool and their identity and authorization are checked. Once the sub-area auditors are verified, they can actively participate in the audit process.
Step 2: Communication with Sub-Area Auditors
In the second step, audit instructions and documents (appendices) are transmitted to the sub-area auditors. The tool for digital consolidated financial statement audits provides a platform on which the law firm can provide the necessary instructions, guidelines and documents and distribute them to the sub-area auditors. This enables a uniform and structured approach to the audit.
The sub-area auditors can then access the documents, edit them and document and upload their work results. A central dashboard is available to track the progress of the audit. In addition, there is the possibility to communicate within the audit team on a project-related basis.
Conclusion:
The two-part process of the digital consolidated financial statement audit with 5F optimizes the communication and cooperation between all audit participants. The tool ensures a smooth flow of information, a clear work structure and effective monitoring of the audit progress. In addition, it offers complete audit documentation for the traceability and verifiability of the audit activities.
„At Grant Thornton Austria, we specifically use the innovative and user-friendly collaboration platform from 5F in the area of auditing. This advanced solution enables efficient digitization of data exchange and makes a significant contribution to relieving the burden on our employees by significantly reducing the challenges posed by a high number of unread e-mails.”
Wolfgang Laserer, Auditor and Tax Advisor | Grant Thornton Austria
Contact
5FSoftware GmbH
Franz-Mayer-Straße 1, 93053 Regensburg
Web: www.5fsoftware.deE-mail: info@5fsoftware.de
Phone: +49 941 46 29 77 40
