The Introduction of Electronic Auditing
E-Audit or electronic auditing is a contemporary version of auditing that is based on a robotic automation technology. It is used to assess the accuracy and completeness of a companys financial records, verify the reliability of existing financial information or identify any errors or inconsistencies in the financial data. It is a process that allows an organization to ensure that their financial records meet the stipulated standards of accounting principles, company regulations and relevant laws and regulations. With its low cost and time efficiency, e-audit has become an invaluable part of modern financial auditing.
What Does an E-Audit Involve?
An e-audit is a type of financial audit conducted by a software application which automates the entire auditing process. This automated process eliminates manual data entry, data manipulation and manual corrective processes. The e-audit system is designed to detect any significant irregularities in the data and alert the auditor to the relevant errors so that appropriate action can be taken.
An e-audit typically involves the collection and analysis of a companys accounting records. This can include balances and reports, general ledgers, trial balances, notes receivable, fixed asset registers and other forms of financial records. All documents and accounts are translated into a computer language and then analyzed. The results are then reviewed by a professional auditor to verify accuracy and completeness.
Benefits of E-Auditing
E-auditing has become a popular and cost-effective tool in today’s professional auditing environment. One of the biggest benefits of e-auditing is the tremendous time savings it provides. In many cases, e-audits can be completed within a few hours versus a conventional audit which could take days or weeks to complete.
E-auditing also offers a greater level of accuracy and security than a manual audit. The automated system is able to quickly identify discrepancies or errors and alert the auditor immediately so that appropriate action can be taken. This process also reduces the likelihood of manual errors due to human oversight.
E-auditing also provides a more efficient and comprehensive review of a company’s financial records. Since the entire auditing process is automated, it increases the auditor’s ability to analyze large amounts of data quickly and accurately.
Conclusion
E-auditing provides a more efficient and cost effective way of conducting financial audits. The automated process is able to quickly and accurately detect irregularities or errors and alert the auditor to any issues that need to be addressed. Additionally, e-auditing offers a greater level of accuracy and security than traditional auditing methods and significantly reduces the amount of time it takes to complete a traditional audit.
