The Covid -19 pandemic has affected the business sectors in a very big manner. The companies in the market need to find new ways to be relevant, whereas the companies that intend to enter the market have found it difficult to show their presence. The methods to conduct the auditing have also changed as the people require to be physically present for such processes, but following the Covid-19 procedures, it is not possible.
The present situation is difficult, especially for auditors, as now they are not able to physically be present to conduct the different procedures necessary for the audit of a company. This includes performing usual routine checking as well as obtaining the required evidence for examining the transactional and accounting records of the business. Furthermore, as most people are working from home, it is difficult for the auditors to get the required documents, which has led to most companies employing Virtual Audit of their companies.
The auditor needs to depend heavily on technology when it comes to auditing. The scenario is very similar if the management decided to utilise the audit outsourcing services for its business.
Advantages to Virtual Audit
There are a number of advantages of Virtual Audit of a company. These are as follows:
- Saves Time and Resources
For a business, time is the most important resource. When conducting a virtual audit, the auditor used a lot of technology that would provide the management with accurate results. These results will assist the management in saving resources that will normally be wasted during the Auditing. This will also help the management decide which resources to use and the estimated quantity to use, which will help plan ahead for the company.
- No requirement to be physically present
Virtual Audit will allow the management to maintain the social distancing as required due to covid-19 and still perform the required examination. The auditors will not require to travel to obscure places or to be physically present. With the use of technology, the auditors will w=find a way to obtain all the necessary details about the company.
- Significant increase in efficiency
The use of technology will significantly increase the efficiency and effectiveness of the audit. As the auditors will use different technologies, they will be able to extract greater detail of the business and this will, in turn, increase the efficiency of the business. Greater efficiency will mean greater profitability and judicious use of resources which will, in turn, mean less wastage of resources.
- Fluent in the use of Technology
As time passes, new and improved technologies are developed, which will help the business increase its productivity and revenue. The management of any business should take extra care that the auditors are fluent in the use of technology and should also use the latest technology in the market. This will ensure that the management is receiving correct and accurate information about the company, and this can be used for making plans for the future of the business.
Virtual Audits: Way to the Future
It looks that the Covid-19 scenario is not going to change for quite some time, and because of this, most of the companies will adopt Virtual Audits in the near future. It seems a better and hassle-free way of conducting financial audits of the company. Although this type of audit is not compatible in all situations and there are many requirements which the business needs to fulfil before deciding if the company should also go with a Virtual Audit.
A virtual Audit is very similar to Outsourcing Audit functions to a third party. So if you are looking to either conduct audit of your company or are looking to outsource the audit functions of the company, then the experts at JAXA Chartered Accountants can assist you in this matter.
JAXA Chartered Accountants also provides a number of different services that will help in the development of the business, such as Accounting Services, VAT and Tax related Services and many others. For more details about the services provided, please feel free to Contact Us. We will be glad to assist you in your business journey.