- Thomson Reuters Tax & Accounting software and research solutions
- Insights | Expert tax & accounting news, analysis, tips, and more
- 4 myths surrounding cloud auditing
Thomson Reuters Cloud Audit Suite
4 myths surrounding cloud auditing
The audit world is changing, and firms are readjusting their technology to remain successful amid the changes. However, cloud technology is still met with many untruths, often casting the cloud in a negative light. Find out the truth on how cloud technology empowers your firm to move forward fearlessly, and why Thomson Reuters cloud audit suite is your firm’s one-stop solution for even the most intricate auditing needs.
MYTH 1: Cloud auditing is not secure
TRUTH: Due to travel or onsite visits with clients, audit specialists tend to keep their “office” on their laptop. If that laptop gets misplaced or stolen, sensitive data can fall into the wrong hands. Traditional on-premise systems’ security can be outdated. Cloud solutions store client 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 in security features, all with reduced IT burden, since system maintenance, troubleshooting, and updates are automatic. So, there’s less reason to fear that laptop with sensitive information.
MYTH 2: Cloud auditing is expensive
TRUTH: One commonly cited study 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, time is money, and these processes require auditors to manually manipulate data and cause time-consuming analysis. Updating on-premise systems can be expensive and difficult, often requiring new software and equipment. The cloud addresses all these challenges and has proven to be the more reasonable and economic solution 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 3: Cloud auditing is too complicated
TRUTH: When auditing tools work together, workflows are simplified, efficiencies 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 automatically populates all the appropriate fields across workpapers. Folders, files, procedures, and workpapers can be automatically carried across years, and worked on simultaneously. Auditors can easily identify problems, and avoid mishaps commonly associated with manual entry. According to experts, cloud-based solutions can improve efficiency by 25-35%, and up to 50% if it’s a holistic solution. There has never been an easier solution.
MYTH 4: The cloud does not sufficiently comply to auditing standards
TRUTH: Physical inventories, design, implementation and testing of internal controls, and managing fraud risk can all be performed remotely, ethically and efficiently. With offices closed, it may be much more difficult to access client books and records, especially for clients who primarily keep paper records. Copies and scans are acceptable, but auditors must guard against fraud and verify authenticity with additional audit procedures to ensure records are complete and authentic. The cloud works to provide a secure, reliable solution to remotely obtain sensitive yet urgent information.