How can remote auditing be applied under the Corona crisis (Covid 19)?
Remote audit is an on-site audit to perform audit tasks by any auditor who has network connectivity, whether they are on the job site or work remotely.Many audit tasks can now be performed by the audit team by default, and information technology facilitates the re-engineering of what internal auditors do.
i think audit science not affected as accounting and economic science due to the huge change that will appear in the structure of accounting standards and economic rules
Monique Elliott, CPA, managing partner of Elliott Group, said firms’ clients are likely to always remember how their auditors responded to the pandemic. That’s why it’s so important to carefully consider the best way to deliver a high-quality audit at this time.
https://www.journalofaccountancy.com/news/2020/mar/remote-auditing-during-coronavirus-pandemic.html
Except for the audit of fixed and stored assets, other audit procedures may be performed remotely
With the advent of the Crohn's virus, cloud accounting and cloud auditing became a necessity and an optimal solution
Remote audit is practicable. As we speak, audit is being done remotely in line with approved audit plan in my organisation. Internal Audit staff have been enabled on VPN to view various application such of BI tools which serves as data warehouse, CBA, TFOS and omniflow to conduct audit engagement remotely from the comfort of their homes. Exit meeting is conducted after audit engagement via skype or Microsoft teams. Bottomline , you need technology as an enabler.
All of our audits are conducted remotely, with no need for an auditor to visit your premises in person. Not only is this better for the environment, it's also ideal for situations where you're trying to limit travel and face-to-face contact with other people.
The following can be done in such situations;
1.Inventory systems to be effected
2. Circle counting; rollback or roll forwad need to be considered to observe sales transactions and purchase transactions
3. Video technology on inventory observation... However, sec. 501 paragraph 11,14,34 need to be invoked where necessary
4. Skype, zoom, CCTV cameras to be used in that respect as may be deemed fit.
Before Corona viruse many audit firm fixed many aduit duties onlone, but now I think audit organization must change some rules and regulations depends on this new world after Corona
This pandemic will create new ways of doing or performing a task as professionals.
I am of the view that with technology, it possible to perform audits remotely. Auditing firms or auditors can start audit planning and work on engagement remotely by asking their client to send them the needed documentation by scanning them to the auditor to work on them.
Entry and exit meetings could be done via Zoom or Skype.
I run a consulting firm that does both risk management and internal audit and we are doing remote internal audits for clients at this moment. We favour either remote read only access to client systems or otherwise downloaded csv data. As pointed out by Romeo Savage and Isaac Anowuo , technology is an enabler.
Of course, as the name implies, remote audit (RA) requires the auditor to carry out his/her review without the need for face-to-face or on-site interface with client's staff. So, how can it be done:
1. Mutual consent/agreement of parties must be secured
2. Audit planning must go in line with this understanding
3. The client must agree to have a 'data warehouse' to which the auditor must have a 'read-only' access;
4. Mutually compatible IT backbone must be deployed, as a key enabler;
5. Virtual interface media (e.g. Zoom, Skype, Google Plus, etc) may be needed during entry, exchange & review of documentation and exit processes
6. As with with on-site audit, assignment of contact staff 24/7 to the audit engagement;
7. The downside of RA include possibility (I say, possibility) of virtual amplification of assets (NCA & Stocks in particular) and the non-financial aspects of the audit assignment, which may be difficult to assess virtually.
Reactions welcome!
التدقيق أو المراجعة عن بعد يصلح مع بعض المهام دون غيرها، مثل تدقيق المواقع الإلكترونية ومراقبة الوثائق ...، هذا النوع من التدقيق أو المراجعة لا يختلف في زمن الكورونا عن الأوقات السابقة، لكن هناك بعض المهام والتي تستدعي الحضور الشخصي أكيد سوف تتأثر.
Not so critical an big problem for auditing companies, as this successful business continues functioning online, working remotely.
Dear, perhaps the answer to your question needs some studies, and the answer to this question varies in different countries, in other words ... I think that it is not possible to do remote review in all developing countries, and if there is the possibility to do a remote review in some developed countries, perhaps We need some scientific studies.
For an external auditor who is taking on a new engagement, remote audit may not suffice. But for continuing external and internal auditors working on site may not be necessary since the auditors already command sufficient knowledge relating to the entity's activities, management, governance and already assessed the risks in previous audits, with a well networked information system, remote audit can be done.
I think we need change some rules and regulations depends on this new world after Corona
Most emphasis should be given to application controls as well as contingency planning and change review as the nature of the business may change and with them the risk profile of the business may also change. take on more of the consulting role than an auditor role and work with the management in paving a way forward. Remote vouching of documents can still be performed for processes however source documents should be reviewed for completeness (this can also be perfomed either via scnanning or by posting of documents from the client to the auditor.
https://www.gov.uk/guidance/mhra-regulatory-flexibilities-resulting-from-coronavirus-covid-19