{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.text}}
How easy and effective is it to work with your auditor during the crisis?
Dr. Michael Abresch
Partner and Leader Assurance Transformation, PwC Switzerland
The ability to work virtually has been key to business survival during COVID-19. Companies that had already switched to digital enabling technologies before the crisis have consistently been able to weather it better than poorly prepared competitors. This applies to auditors as much as to anyone else. In this post we look at how successful auditors have adapted by finding the right balance of people and technology, virtual and physical presence, to continue serving their clients effectively.
COVID-19 has made it much more difficult for audit teams to work on their clients’ premises. At many companies homeworking and teleworking are now standard, including in dealings with internal and external partners. This new situation has created a divide between businesses that have a digital infrastructure adequate to the task, and those that are suffering because of weaknesses in their digital capacities and the quality and accessibility of their data.
Audit is naturally one area that relies on secure, unimpeded electronic data exchange – all the more so when restrictions on on-site presence have made access to physical records difficult or impossible. Despite these difficulties, many auditors have managed to conduct complete annual audits and quarterly reviews digitally, without disrupting their clients. This has been thanks largely to digital audit documentation solutions, and in particular web-based collaboration platforms.
What do web-based audit collaboration platforms do?
An effective digital audit collaboration platform enables the electronic exchange of all relevant documents, giving auditors and the companies they’re auditing constant transparency on the status of the audit. Cloud-based solutions of this sort will be increasingly prevalent in the years to come. They will make it easier and easier for auditors to operate independent of their physical location. This is a common client wish, and one backed up by a 2020 survey by PwC in Germany which found that for the first time, more than half (58%) of the decisionmakers polled already use modern technology such as tablets, chatbots and virtual rooms to communicate with their auditors. Three years ago, it was a mere 28%. In 2020 a whole 58% expressed the belief that their audit wouldn’t still be conducted on their premises in five years’ time. That’s not to say that physical auditor presence won’t continue to be important: 42% still believe that the audit will continue to be substantially conducted on site. So it’s clear that successful auditors will have to continue striking a balance between virtual and physical presence.
What’s particularly useful about web-based audit collaboration platforms is that they allow everyone involved in the process to see what’s been done, what still needs doing, who’s responsible – and what tasks absolutely have to be completed on site. That way, physical presence can be limited to issues that require personal interaction with clients, for example discussions of audit findings and suggested improvements or assessments of control observations – or even the professional exchange that is such a valuable component of any good audit. For auditors with the right technology, this approach has worked very well during COVID-19, and will continue to do so.
A case in point: PwC’s Connect tool
Connect is a collaborative workflow tool used by auditors at PwC worldwide to enable faster, more efficient and secure information sharing at each stage of the audit. It monitors the document exchange process in real time and allows both auditors and the client to check progress at any time via PC, tablet or smartphone – wherever they’re located. The fact that it’s been possible to continue performing seamless audits during the pandemic is thanks in no small part to Connect. The platform is evolving on an ongoing basis. In particular, Connect is now interlinked with PwC’s global ERP system, Aura Platinum, facilitating the transfer of data between tools and improving collaboration.
Conclusion: the ability to work with a tech-enabled, resilient auditor is an asset – not just in a crisis
Companies with the willingness and ability to adapt and adopt the latest technologies have been much more likely to survive COVID-19 on the winning side. This has also applied to auditor/client relationships: the more virtual and flexible, the greater the likelihood of completing the audit without disruption to the business.
This basically requires two things: an auditor with the technology and processes to enable its people to work effectively even under adverse circumstances; and companies with their own functioning systems and processes to structure quality electronic data and enable tech-enabled auditors to mesh seamlessly with their business. If this combination works, you’ll have an audit that continues to provide assurance and add value to your business for years to come, even when times get tough.
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Kontaktieren Sie uns
Dr. Michael Abresch
Partner and Leader Digital Assurance, PwC Switzerland
Tel.: +41 58 792 21 20
