The formalization carried out in the auditing standards, unfortunately, is very unsuitable for conducting a quality audit because it is impossible to fully formalize such a creative process. Thus, auditors found an alternative – a virtual data room. So, how does it work?
Why do companies organize the audit procedure?
Competent management of a commercial company and reliable control today are the criteria for a successful and secure financial and economic activity. If you want your business to prosper, then your investment flows, accounting, and taxation must be in perfect order and under the scrutiny of professional economists. Today there is a reasonable solution to the problem – use the services of experienced accountants and financial audit specialists that audit organizations can put at your disposal!
An audit of an enterprise is an independent expert review of financial or accounting statements. The purpose of such a check is to verify the fact that all the organization’s documentation is in perfect order or vice versa, to identify errors and correct them on time.
Conducting an audit is a highly profitable event. Having spent funds on an audit, the company in return gets the opportunity to significantly reduce financial losses (fines, identified shortages, fraudulent activities, etc.).
Audits are mainly carried out by specialized companies, whose duties include not only verifying the reliability of the enterprise’s activities in the field of finance but also providing the manager with recommendations that can be followed to increase the efficiency of the company.
In general, the audit simultaneously performs the following functions:
- Analytical – a thorough identification of the reliability of documentation on the financial activities of the company.
- Expert – a complete check of the organization’s activities. Reconciliation of documents with the actual state of affairs.
- Production – the introduction of innovations to the enterprise regarding accounting.
- Advisory – expert advice on taxation issues.
Upon completion of the audit, an audit report is issued to the audit customer. Such a document contains all the results of the check, as well as a description of the violations found (if any) and recommendations for their correction.
How can a virtual data room simplify the audit?
The use of information technology by businesses in business has changed the environment in which the audit is conducted. Most companies provide accounting policies in computerized form. Under such conditions, the methodological methods of audits change. Computer information technology is becoming an auditor’s tool and at the same time the object of his research.
The data room is designed to create corporate electronic document storage and automate the processes of registration, storage, and information retrieval.
According to https://datarooms.fr/, data room ensures effortlessly preparation for tax and audit reviews thanks to the following functions:
- The system provides ready-made scenarios for preparing for inspections, which reduces the risk of late submission of documents to regulatory authorities.
- Documents can be quickly uploaded under the requirements of regulatory authorities in electronic form (along with documents, both electronic signatures and official documents are uploaded) or paper (including with an ES stamp).
- Access to the archive is limited: for employees, the rights corresponding to their positions are configured.
- It is easy to find and download a set of transaction documents at once.
- Through the use of the data room, you can centrally manage access to customer data and ensure their safety.
Support for centralized and distributed installation allows you to build unique business processes for companies with an unlimited number of users.