Cloud Audit is basically about Online Financial Audits with the help of Information Technology resources available.
If banking operations can be commenced at any branch, If online banking can be done, If the doctor can view patient data from any spot, If Income Tax can be operated anywhere any time and same way other tax portals, if online Accounting can be done in any country, If IT person can manage Servers from anywhere then why not Chartered Accountants can perform Online Audit of Financials Accounts.
Major benefits of e-Auditing are:
Audit Program should be prepared keeping in view IT resources also. Audit team will be a mixture of Finance and IT person
Learning new skills on how closely Finance and IT can be connected.
· Less Time- Time utilized for transportation is saved, working for 8 hours can be increased to 10 hours easily. Audit program has a time stamp and in e-Auditing chances of timely execution is much more.
· Easy way of maintaining and storage of Working Papers. Audit Documentations indexed with audit program and can be reviewed, retrieved on 1 click. Documentation can be attached and mapped as per audit programed. Well organized and storage of working papers.
· Paperless Audit- which is one of the biggest contributions towards healthy environment. All documents are stored in cloud base server including Audit Memo’s and other basic documentation too. Risk of losing data will be Nil and a Bye to big files folders.
· Using maximum IT resources like Emails, Zoom Call, Dropbox, Data Management System in Cloud space. Defining Audit Program taking in consideration of IT resources and data pooling with the help of hardware and software. Of course, we must take care of Audit business model.
· More Transparency and less Risk. – Audit program and team can be easily mapped according to their level keeping in view confidentiality and security checks Checking of control areas and procedures.
· Big support for flexible and on demand hours of working.
· High cost Savings-Cost Benefit and providing client an option for Cloud Base or in House
What we require to have e-Auditing & Accounting. Challenges in implementation:
Smart use of Information Technology resources like cloud base Server’s, Processors, Memory, Security checks, Procedure for Data Management System Email, Zoom Call, drop box etc. to be aligned and connected with big pool. Multiple clients share the same pool of resources, but all are isolated and segregated from each other. These resources need to be integrated and software and machines should be able to reach each other.
Important points to be taken care are:
1. Well plan resource pooling.
2. More emphasis on self-service, so that less dependencies on human interference.
4. Integrality and availability.
5. Security Checks and Insurance
6. Data Authenticity and Privacy
7. Data Management System
8. To take appropriate approvals and licenses keeping in view ICAI Code of Conduct.
9. Data Ownership
10. Backup and Restoration of Data
11. Technology Risk.