By Admin / October 26, 2020
Auditing of the enterprise financial transactions has been observed as the most critical task in hand that may not yield expected results despite diving deeper into the account books. Legends have it that accounts could never be completed without errors and that post reporting auditing is highly essential to catch the gaps. However, new age technologies doing most of the basic auditing themselves while the enterprise frauds scams continue to haunt, has put the auditors under question.
Before you plunge at the choosing your next Oracle compliance services provider, here’s a quick run through –
Primitive software tools deployed for auditing
Let’s face it – auditors have still not been facilitated with high performing systems to ease the burden off their heads. However, they push it to the limits to unlatch maximum benefits from the primitive systems. For an example, the most commonly used operating system for small scale businesses is the auditing mechanisms in the Windows were written to support troubleshooting events and not perform security audits of enterprises.
Although many alternatives in face of cloud driven auditing tools have been doing the rounds but they are simply not enough. While the ones that really helpful are beyond the reach of the common business owner. Thus, the data security is at stake, the correctness of the findings isn’t assured are key gaps that auditors can be held accountable for.
Compliance Audits – one after the other
The state rules by which the enterprises have to operate are subject to abrupt modifications. Thus, organizations both small and large across different industrial units have to keep an eagle’s eye on the changing regulations and verify if their business is contradicting any of the new rules. To do this, the auditors have to brunt the storm as these regulations may change on daily basis. At times, auditors along with the taxation department have to perform a complete overhaul of the financial processes so that multiple compliance standards aren’t affected. Compliance auditing in mid of the fiscal year is an excruciating task in hand while auditors have to stay prepared for shockers at the 11th hour.
Service credibility at stake – how relevant are you?
A harsh reality but business owners are not too pleased with auditing and believe it hardly brings any value to the ROI. However, the fear of falling to massive frauds and certain government regulations compel them to undergo a thorough auditing process. Thus, one of the biggest challenges here is the credibility of reporting. Auditors have to produce substantial insights to convince the owners about the business relevance of such an activity. Most audit firms quote their services to be unique and completely in line with the customer’s business ecosystem, they are often criticized for unnecessary costs that is nothing less than an enforced evil.
Swaying between tools that automate auditing process and the rising expectation to outperform such tools, auditors must enhance their skills that leap beyond basic mapping. They must inculcate other business processes and offer exclusive auditing solutions that are specific to a customer’s business. Not to miss, its high time that they consider self governed Smart Contracting and its growing influence over evaluating the transaction ledger.
Outlining potential Fraud
A graving challenge for auditors is the compulsion to blind trust those in the organization who have the finance controls. Most frauds go unnoticed due to the management’s capacity to override actual transaction details in the ledger and thus misleads are the starting point of any investigation. Therefore, auditors have to perform the authenticity tests of the entries done to the general ledger or other adjustments made to the financial statements. When designing the audit procedures, they must conduct a background inquiry of individuals assigned the role of financial reporting. Any unusual activity in the past or allegation must be taken seriously. Having mentioned that, any skeptical entry into the ledger shouldn’t be overlooked. Moreover, entries to the ledger done after the reporting period should be highlighted instantly. There’s a mix of references to frauds identified in the past, reverse accounting and mapping that goes into outlining potential frauds.
Foreseeing change with Oracle Finance Management System
With an innate vision to make quality auditing possible and accessible, Apple Consulting Group is committed to propose a game changing alternative to the curb the mentioned complexities. Reach us today and explore what makes us the provider of best Oracle finance services in US.