21-09-2012, 03:19 PM
Audit Automation in Contemporary Organizations
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INTRODUCTION
Audits are performed to ascertain the validity and reliability of information as well as to provide an assessment of a system's internal and external control. The goal of an audit is to express an opinion of the person / organization / system (etc.) in question, under evaluation based on work done on a test basis. Here’s we find the close relation of Audit and Information Systems and it would be great if anyone can establish a link between Audit and Information Systems which will eventually lead to implications of Management Information Systems in Auditing. That’s why today’s auditing firms are constantly trying to establish a viable Information systems in their organizations in order to increase their efficiency and accuracy of their work. For example, ACNABIN Chartered Accountancy firm of Bangladesh is planning to establish an integrated information systems for the Verification of Alternative Cash Assistance files which they believe will enhance their ability to work efficiently and accurately. There have been two key drivers to the increased adoption of automated systems. Firstly, the technology has become sufficiently advanced to enable sophisticated automated systems to be easily accessible both in the office and from client sites. In addition, storage capacities have improved to such an extent that storing large amounts of detailed audit data electronically for several years no longer poses problems. The second reason is the increasing pressure auditors have faced to improve efficiency and profitability, while at the same time improving standards of audit work, following the introduction of International Standards of Auditing (ISAs) in 2005. The ultimate focus of this report is on the automation of the activities performed in Auditing.Increased globalization of businesses, market pressure to improve operations, and rapidly changing business conditions are creating demand for technology-enabled auditing (TEA) to ensure timely ongoing assurance that controls are working effectively and that risk is properly mitigated.
Rationale Of Study:
So far I know , no earlier research in Bangladesh has yet been conducted on this area. That’s why I am interested to work on the prospects and challenges of Audit Automation. From the very beginning of my life I had a fascination to the procedures of Auditing and at last I got a chance to do something like Auditing. But as a student of MIS, there I felt the dire need of an effective information that would help both the clients and the auditors to perform their respective duties more effectively, more quickly, more accurately and most efficiently. Besides, for a few years now, the concept of "paperless offices" has hovered on the horizon, but while technologies such as word processing and accounting software have revolutionized office life, paper-free working has never fully materialized. However, among auditors at least change really is afoot, with growing numbers switching to paperless audit automation systems. In the past three years alone, the number is estimated to have jumped eight-fold. Firms of all sizes are now taking the plunge. The structure of audit work and the need for high levels of consistency and quality control mean that it lends itself to automation. Automation software cannot do all the hard work for you; nor will auditors one day be replaced by computers. What it does mean is that the risk of errors and omissions can be minimized while at the same time improving efficiency. All the various procedures and documentation auditors need to address and create in a structured environment are brought together in a logical, consistent and well-thought out on-screen framework.
Objectives of the Study:
Most of the business processes today are automated to various degrees and businesses continue to invest in maintaining and expanding this automation through the acquisition of computer and telecommunication technologies and various enterprise systems such as Enterprise Resource Planning(ERP) , Supply Chain Management (SCM), Partnership Relationship Management(PRM), Customer Relationship Management (CRM), Data Mining etc. Such automation of business processes has led to compulsory changes in Auditing procedures, standards and Processes.
Organization of the Report :
This report comprises five different chapters in which each of the chapters contains different flavor of study. The first chapter includes the introduction of the report. In this chapter I tried to discuss the concept of audit, the objectives of the report i.e. for why am I going to prepare this report, the scope of the report, the rationale of study etc. I attempted to prepare this report because so far there is no study done for audit automation. I felt the dire need to inform the today’s auditors and contemporary organizations of the latest concepts of audit automation and its use and importance. In the second chapter, I attempted to present the organization where I have performed my internship period. I have discussed the nature of the organization, the partners of the organization and their experiences, the human resource of the firm, the services they provide, the background of the organization , their head offices and their branches, what I have learned from them etc. In the third chapter I tried to introduce the concepts of Audit Automation, their importance in the contemporary organizations, the drivers and forces that work behind this concept etc. The tools and software used for Audit Automation and the benefits gained from those are discussed in this chapter. In the fourth chapter, the findings are analyzed e.g what are the benefits of using Audit Automation and what are the limitations that exist in developing and maintaining an effective Audit Automation. In this chapter I attempted to provide a flavor of SWOT analysis for using Audit Automation in an organization like ACNABIN. Last of all, a conclusion is drawn and I attempted to provide some recommendations based on my findings and analysis.