The top 4 myths about cloud auditing

In a rapidly evolving auditing profession, adopting cloud-based audit solutions is often met with resistance. Despite the potential for enormous benefits, many auditors still have misconceptions that prevent them from embracing change. However, as cloud-based audit solutions become more prevalent, these firms risk a significant disadvantage in efficiency, productivity, profitability, and client service.

Here, we debunk the most prevalent myths about cloud auditing and uncover the realities that can propel audit firms forward to new levels of productivity and success.

Myth #1: Clients don’t want to use the cloud

Many firms hesitate to transition to the cloud, citing a lack of interest from their clients. The belief is that clients are not interested in using cloud-based solutions for their audit needs. This myth stems from the assumption that clients are either unaware of the benefits of the cloud or are reluctant to share their data online.

The truth. In actuality, clients value the flexibility and efficiency offered by cloud-based solutions. Not only that, but businesses and individuals today are accustomed to handling operations on the go and expect their audit partners to utilize the latest technology.

With more and more clients seeking firms that can deliver services efficiently and securely from anywhere, resisting this evolution could run your firm the risk of losing clients to competitors that employ modern technology.

Myth #2: There is no cloud integration

Many believe that cloud platforms cannot communicate or work well with the firms' existing systems for their audit processes, such as software applications or data sources. As a result, this myth suggests that cloud solutions would create isolated and inefficient workflows for auditors.

The truth. In the early days of cloud computing, integration challenges were a genuine concern, but the technological landscape has transformed dramatically in recent years. Today, any reputable audit software platform integrates seamlessly with cloud infrastructure. Whether a platform offers a cloud component or is entirely cloud based, it works cohesively with existing systems, streamlining operations and enhancing collaboration with both colleagues and clients.

Myth #3: The cloud is unreliable

Some auditors may be concerned that cloud solutions depend on internet access, which can be unreliable or unavailable in some areas. There is also concern that cloud servers are prone to crashes or failures that could compromise data and disrupt work. This myth points to the fear that cloud solutions are less dependable than on-premise systems that are under the firm's direct control.

The truth. The belief that cloud connectivity is inconsistent and unreliable couldn't be further from the truth. With a stable internet connection, cloud-based solutions offer robust connectivity through an infrastructure of highly reliable and redundant networks, ensuring continuous access and minimal downtime.

Firms leveraging cloud technology benefit from enhanced accessibility, allowing their teams to work remotely and collaborate in real time — without hiccups.

Myth #4: Advanced technical skills are required to use the cloud

This myth stems from the perception that cloud technology is new, complex, and requires specialized knowledge and expertise. Some auditors may feel overwhelmed by the variety and complexity of cloud services and platforms, as well as the need to keep up with the latest developments and best practices. Another concern is that cloud platforms are more difficult to customize or configure than on-premise systems, which auditors may be more familiar with.

The truth. When it comes to implementing new technologies, many firms imagine steep learning curves and complex skills. But the reality is that operating in a cloud-based environment is akin to working on a local server setup. The main difference lies in the hosting location — either on-premises or in the cloud. For users, the transition is virtually seamless.

Most cloud platforms are designed with user-friendly interfaces and intuitive controls, making the learning process straightforward. Most reputable technology providers offer robust training and support so firms can adapt quickly and efficiently.

Additionally, cloud platforms offer a high degree of flexibility and scalability, allowing firms to adjust their usage and configuration according to their needs and preferences. Cloud solutions can also automate and optimize many tasks that would otherwise require manual intervention — such as data collection, analysis, reporting, and compliance — and then reduce the technical burden on auditors and empower them to focus on more value-added activities.

More common myths about cloud auditing

In addition to those myths, some other longstanding ones continue to keep decision makers from making the move to the cloud and reaping all the benefits. Here’s a quick look at some of the more enduring myths we continue to see.

Myth: Cloud auditing is not secure

The truth. Due to travel or onsite visits with clients, audit specialists tend to keep their “offices” on their laptops. If a computer gets misplaced or stolen, sensitive data can fall into the wrong hands.

Traditional on-premise systems’ security can be outdated. Cloud solutions store clients’ data on remote, encrypted servers with redundant, up-to-date security measures for retrieval only by those people authorized to access them. You’re getting the best security features with reduced IT burden since system maintenance, troubleshooting, and updates are automatic.

Myth: Cloud auditing is expensive

The truth. One commonly cited study from IDC says companies lose 20-30% of their revenue to inefficiencies every year. This number may be even higher for auditing firms because of inefficient processes commonly in place. Plus, many processes require auditors to manipulate data manually, which causes time-consuming analysis. Updating on-premise systems can also be expensive and difficult, often requiring new software and equipment.

The cloud addresses all these challenges and has proven to be more reasonable and economical than traditional on-premise solutions. It’s like having a full-time staff member tracking trends, compliance, and industry and tech updates, allowing you to reduce time to execute reliably high-quality audits.

Myth: Cloud auditing is too complicated

The truth. When auditing tools work together, workflows are simplified, efficiencies are supercharged, and deep analysis is completed faster. Cloud-based solutions give auditors a quick, clear picture of their clients.

Unlike on-premise solutions, data only needs to be entered once, and all the appropriate fields across workpapers are automatically populated. Folders, files, procedures, and workpapers can be automatically carried across years and worked on simultaneously. Auditors can quickly identify problems and avoid mishaps commonly associated with manual entry. Plus, cloud-based solutions repeatedly demonstrate improved efficiency across all aspects of the business — there has never been an easier solution.

Myth: The cloud does not sufficiently comply with auditing standards

The truth. The cloud does not compromise the quality or integrity of the audit process. On the contrary, it enhances it by providing auditors with secure, real-time, and collaborative access to client data and records. The cloud also enables auditors to perform various audit procedures remotely — such as inventory observation, internal control testing, and fraud risk assessment — using video conferencing, data analytics, and digital verification tools.

The cloud adheres to the highest standards of data protection, confidentiality, and compliance, ensuring that auditors can perform their work ethically and efficiently.

Complete audits faster, with absolute confidence

Ultimately, one truth is clear — the audit world is changing. The trend toward cloud-based interactions in accounting reflects broader shifts in consumer behavior, where digital transformation is not just preferred but expected.

A cloud audit solution offers a scalable, secure, and efficient environment for audit professionals to excel, regardless of where they work. By overcoming misconceptions, audit firms can enhance service delivery, boost client satisfaction, and stay competitive in an increasingly digital world.

To harness the power of cloud-based audit technology, explore Thomson Reuters Cloud Audit Suite, an unrivaled, end-to-end solution for accurate and efficient audit and assurance engagements.