02
Mar 2021
With the advancements in technology, there is the development of various better and resourceful methods which will enhance the profitability of the business as well as prepare a future path for it. One such method which has been developed and used extensively nowadays for businesses is known as a Remote Audit.
Let us know what a Remote Audit is and what are the different benefits of a Remote Audit to a business.
What is a Remote Audit?
A Remote Audit is a virtual form of audit that may have the exact same process as a physical audit but is conducted with the help of various electronic means which will assist the auditor in obtaining data required for the Financial Audit of the company remotely. This method will also help in evaluating and understanding the business processes and will employ tools that will provide the required data to the auditor without going on site.
This type of audit is currently widely in use in the present day because of the present Covid-19 pandemic. People all over the world prefer to conduct their work from the safety of their homes. Ironically, the tools used for remote auditing can sometimes provide more reliable information about a particular business process.
This does not mean that an audit should purely be conducted offsite, and there is no requirement for the auditor to go to the company to find information. A remote audit should be conducted only when the auditor can get all the required information about the business from the comfort of any remote location or when the employees of the company are not familiar with the audit process, and the said process can hamper the working of the business.
Let us see some of the benefits of Remote Audit.
Benefits of Remote Audit
There are various benefits that an auditor can take advantage of by a remote audit. These benefits are as below:
1.Using technology to save Time, Money and Resources
To conduct an audit, the auditor needs to accumulate all the necessary business information. This information is available mostly on various clouds and using various software. In such a case, an auditor can save a lot of time and other resources by avoiding the travel time and wasting resources to obtain said records.
2.Quicker and Efficient Audit of the client
Since all the information about the company is available to the business from a single location, the auditor or the audit team can make a decision quickly and can consult each other before taking any decision which will assist them in increasing the efficiency of the financial audit of the company.
3.Conducting Audit even for difficult Locations
The location of a business plays a major role in the efficiency and profitability of a business. Similarly, the location of a business affects the audit of a business in a major way. Many businesses are set up in a difficult location or a location which is going through some of the other political or social turmoil. A remote audit of such business will help the auditor to conduct a proper financial audit of the company despite the conditions in the surrounding areas.
- Staying up to date due to the use of recent technologies.
As different tools and technologies will be utilised for the remote audit, the auditor will stay up to date with the various changes or amendments in the financial domain. With the use of various software and technologies, the auditor will be able to use the latest changes as dictated by the concerned authorities.
Future of Remote Auditing
With such advantages, remote auditing can be a beneficial prospect for both the Auditor as well as the business. the use of traditional audit techniques may cause some disruptions in the normal business processes of the company. The remote audits are more cost-effective, efficient and lucrative for an auditor, and thus we can say that such audits are here to stay.
If you would like to know more about the current financial situation in the country and would like to take the benefits of various financial services such as Accounting Services, Auditing Services, and many other services then do look up the services provided by JAXA Chartered Accountants. Contact us to know more and avail of our assistance. We will be happy to help.