Cloud-based audit and accounting methodology

Audit management software helps accounting companies perform audits and typically includes all or part of the following capabilities:

• Engagement management tool with trial balance capabilities
• Workpaper management
• Financial statement reporting functionality
• Feal-time collaboration
• Automated and risk-based methodology, plus secure confirmation

Audit software simplifies risk assessment and enhances efficiencies throughout the audit process. With many flexible options for creating and customizing your audit programs, audit software enables you to easily manage your entire audit from a single source and communicate relevant information to clients, including the status of work overall, workpaper signoff status, and financial advice, without overcomplicating the process.

Complete several tasks simultaneously and enjoy customization options that further increase workflow efficiencies, like quick-start options for small non-complex entity audits where you are provided with pre-filled planning forms and pre-tailored audit programs.

With cloud-based audit software, you get the advantage to work from anywhere, securely access data, and collaborate with colleagues in real-time.

Audit software is continually updated with the latest auditing standards and disclosure requirements.

When you work in the cloud, you get improved efficiency, reliable security and a flexible and scalable way to advance your audit practice. On top of all the features you are used to with your desktop audit suite, you also get:

• Instant access to all audit data in real time, from any location. Simplify your workflow and forget about transferring, backing up, restoring or refreshing audit files.
• Easily coordinate multi-location audits. Collaborate with ease as you and  your staff can access live data simultaneously from anywhere in the world.
• Say goodbye to version control. Rest assured that you always have the latest version of a document, and you can review work as soon as it’s completed.
• Secure sensitive data. Enhance your firm’s security and control over sensitive data by keeping it secure in the cloud and off devices that can be compromised, like laptops and tablets.

Cloud solutions store client data on remote, encrypted servers with the most up-to-date security measures—and are visible only to individuals authorized to access them. This relieves the fear of leaving your laptop, and thus sensitive data, behind during client visits or commutes. And because data in the cloud requires authorized access, stolen hardware no longer is a major concern.

In addition, the cloud enables work to be completed and saved in real-time. So, you’ll have the most up-to-date version of your files and data to share securely with your clients from any location.

Document-level security:

• Prevent unauthorized access through the website, restricting “back-door” access that inherently exists with in-house systems.
• Restrict access to audit workpapers and ensure confidentiality, as required by professional auditing standards.
• Easily configure access and security privileges for every user via the system’s administration module.
• Achieve retention and deletion of all audit documentation in accordance with your firm’s policies.
• Restrict document viewing, annotating, editing and other functions by user groups, drawers or even specific documents (for example, by document type).
• Maintain user accounts, passwords and related expiration dates via an advanced user administration module.
• Protect emailed documents by using the on-the-fly PDF Passwords feature, so only intended recipients can open and view.
• Control file room structure, index fields and drop down values.
• View detailed document audit trails to monitor every action taken with a document from the time it was created.

Built-in security protects against corrupted or lost data:

• Sophisticated network and data center security technologies protect all your documents and data.
• Access control employs username and password authentication and 128-bit SSL encryption and all user sessions are tracked—providing a complete audit trail.
• Multiple, redundant data centers ensure a level of continuity, availability, back-up and disaster recovery not available with an in-house system. DVD copies can also be made of all files and documents on a routine basis.

Thomson Reuters employs both standard, native cloud defense functions in IaaS, PaaS and SaaS environments, as well as custom detection capabilities in key locations. Thomson Reuters is also employing segmented account management in IaaS containers to better isolate risks associated with broad-based administrative access to cloud consoles and account services.

Supporting documentation for an audit includes information obtained by the auditor from inquiry, observation, inspection, confirmation, recalculation, performance, and analytical procedures.

By letting technology do more of the work for you.

• Data analytics and cognitive technologies are making the audit process increasingly effective and efficient.
• Cognitive and machine learning provide assisted decision-making for auditors, based on how others in the profession have made similar judgments.

Today’s audit technology is like having a virtual peer who is always available for you to consult with anytime.

Learn more about Thomson Reuters Cloud Audit Suite

Auditing for cryptocurrency requires a deep understanding of the underlying blockchain. It also requires the firm’s staff to understand how controls – mechanisms of trust – can be built into the blockchain.

The private nature of cryptocurrency makes auditing assets and establishing controls difficult. So, how do you inject trust into an ecosystem built and sustained on being trustless? How can a firm gain visibility? How can auditors build controls into a blockchain that is controlled by a collective?

Without guidance from the IRS and other authorities, customers have little to no external pressure to demonstrate real visibility and transparency into cryptocurrency holdings. The pressure has mainly come from internal stakeholders and business partners.

To gain access to cryptocurrency holdings, auditors need specialized tools that offer visibility into assets without sacrificing the blockchain’s core privacy principles.

To audit cryptocurrency, auditors must to be able to:

• certify proof of control,
• determine true valuation, and
• verify private vs. public blockchain transactions.

Overcoming these obstacles is an important opportunity as 70% of large firm clients expect help with blockchain audits. (“How blockchain can drive finance and audit performance,” Forbes, February 18, 2019) 

For more information on how to address the need for cryptocurrency audits, read our whitepaper “Accounting for cryptocurrency: A challenge and opportunity for CPA firms and professionals”

The Cloud Audit Suite offers an extensive selection of services that can help you get more out of your software investment, including:

• STANDARD TRAINING: Our standard training is a great way to bring new staff up to speed, let experienced staff revisit specific topics and/or supplement custom training or consulting. Standard training options include On-Demand, Web, Classroom and Seasonal training.
• CUSTOM TRAINING: We offer affordable custom training services that can be tailored to your firm’s specific needs. Custom training is taught by our professional instructors and can be delivered either via web training or onsite in a classroom setting.
• CONSULTING SERVICES: Our trained consulting professionals can analyze your firm’s workflow processes, provide best practices and help you develop a successful implementation and rollout strategy for your CS Professional Suite software.
• PROFESSIONAL SERVICES: Put the expertise of our software application consultants and IT experts to work for your firm. Our team can customize applications and data to do exactly what you need, create customized reports, migrate and convert data and even build utilities and tools that can assist your firm with application integration and other technology needs.
• ANNUAL SYNERGY CONFERENCE: At our SYNERGY Conference, we offer training at all levels of expertise in a variety of formats, including hands-on, lecture-style and informative roundtable discussions. For more details, visit our website: Tax.ThomsonReuters.com/CS-SYNERGY. Professional accreditation is available.

For more information on training and consulting or to register for courses, visit Professional Services (thomsonreuters.com), email us at CS.Sales@ThomsonReuters.com or call 800.968.8900.

When starting a new Audit engagement in the Suite you have the option to use some of the pre-loaded industry-specific templates within the Quick Start option, such as:

• Construction Contractors
• Financial institutions
• Health care entities (governmental)
• Health care entities (nonprofit and investor-owned)
• Local government
• Nonprofit organizations
• Nonpublic organizations
• Oil and gas entities
• Real estate entities
• School districts

Each audit engagement is unique, but most share the same basic steps of preparation, planning, field testing and audit procedures, as well as subsequently rendering the audit opinion. To ensure a timely and successful audit, creating and following a succinct outline of your audit strategy (including planning and preparation) is paramount.

Take a look at our audit engagement checklist for step-by-step instructions.

“One of the most common causes of unsuccessful audits is inadequate planning,” says Wade Brylow, Internal Audit Director at Northrop Grumman.

Engagement planning starts with creating a strategy for how to approach and execute the audit.The engagement plan should include the following steps:

• Determine the audit objective. This is the foundation of planning and its clarity determines how to proceed.
• Set the parameters and scope of the audit. The number of parameters and the size of the scope are determined by the audit itself. Remember to consider more than just the traditional parameters.
• Identify an exhaustive list of constraints. Make sure to include the usual items of budget, time, and resources.
• Conduct a risk assessment. Do this not only for the organization but for the industry, if needed.
• Decide which method or techniques to employ for the audit approaches. The approaches are based on the audit objective, its parameters, and constraints, and also taking into consideration compliance-related issues. This critical step can be key to having an effective and efficient audit.

Take a look at our audit engagement checklist for step-by-step instructions

Here are the steps for conducting an audit engagement:

1. Prepare and plan.
2. Conduct fieldwork.
3. Gather evidence.
4. Report findings and file supporting documents.

For more detailed instructions, check out our audit engagement checklist.

The auditing team does a thorough risk assessment of the client’s company, which includes assessing the following:

• The industry
• Management’s integrity
• Governance procedures
• Internal controls

Today, most companies and industries rely heavily on data, and the ability of auditing teams to examine and analyze the client’s data is necessary. The use of technology can greatly assist in determining the right scope of the data in order to make it relevant to the intended audit.