In this article, Senior Accountant Gabriel Glahe, CPA highlights the key benefits of choosing a remote audit for your organization and explains how this approach can add value beyond traditional, on-site audits.
In recent years, the rise of remote work has changed how all types of organizations operate, and the field of auditing is no exception. With advances in technology and changes in the overall field of auditing, more organizations are now able to complete their audits remotely with efficiency and accuracy. Whether you are a traditional business, a not-for-profit organization or have an employee benefit plan in need of a review or audit, your auditor no longer needs to be located in the same area code to conduct the engagement effectively. Organizations can still obtain audit expertise and partner-level oversight for a full range of audit services – audits, reviews, compilations – with minimal disruption and often with an added cost savings and work flexibility.
Cost Savings – Every dollar matters for your organization. Many non-profits and employee benefit plans operate with lean teams and tight budgets, where the annual audit or review represents a significant investment. By performing the work remotely, organizations have found that they can achieve the same high-quality audit experience while saving on the fees for these professional services and related travel. In fact, the savings can be on average up to 30% compared to typical metro-area audit and review pricing because of differences in rates based simply on the location of the auditor’s home office and its cost of living. Those savings can be redirected toward what matters most – supporting your organization’s programs, services and communities.
Flexibility – One of the most significant advantages of remote audits is the flexibility they provide for your staff and management team. Staff can upload records, answer questions, and provide supporting documentation according to their own schedule, rather than coordinating around the availability of an on-site audit team. This reduces stress on employees, allowing them to balance their routine responsibilities with audit requirements. It also means that critical personnel do not need to step away from their daily tasks for extended periods, which improves overall productivity. In addition, remote audits enable organizations to provide information gradually as it becomes available without feeling rushed or overwhelmed.
With these two significant financial and operational benefits, it would seem like most organizations would convert to a remote-based audit. However, organizations often still have concerns that cause them to hesitate to change from what has been done in the past. These concerns can include questions about timely and efficient communications with members of the organization (including the board of directors) as well as concerns over the efficiency and organization of the audit for the personnel involved.
Auditor Communication and Involvement with the Organization – There has been a common belief that the auditor needs to be in-person to effectively perform the audit as well as communicate with members of management or the board of directors. With the advancement of technology platforms for web-based conferencing, long distance communication over these platforms has become the norm in recent years. This applies not only to performing the audit but also meeting with management about operational items and attending board meetings to present the financial statements and discuss audit findings. Video conferencing platforms have allowed for much more effective information sharing and personalized communication between the auditor and the organization. In addition, these video conferences may require far less logistics to set up and can provide for communications that are timelier and as effective as formal, in-person meetings.
Efficiency and Organization of the Audit for the Organization’s Personnel – Another common concern of organizations considering a remote audit is that the process can be difficult for their personnel because of the challenges in understanding the audit needs of the remote auditor. However, most remote auditors use specialized, secure audit software designed to simplify the entire audit process. The software used clearly outlines all the documentation and information required for the audit, allowing client personnel to easily see what has been provided, what is still outstanding, and what has already been reviewed. This transparency ensures that nothing is overlooked, reduces miscommunication, and keeps the process organized from start to finish. The software also maintains a complete audit trail, which is helpful for both internal review and regulatory compliance. By centralizing all documents and communications into a single platform, the audit becomes more efficient, manageable, and seamless for all parties involved.
Remote auditing can be a strategic choice that can enhance efficiency and significantly reduce audit costs, allowing for more resources to be invested directly towards your organization’s mission. Our team is well-versed in the unique challenges and compliance requirements of these organizations and has years of experience conducting remote audits for many for-profit, not-for-profit and employee benefit plans of various sizes and complexities. By combining our technical expertise with the efficiencies of remote technology, we can deliver an audit experience that is smooth, cost-effective, and tailored to the specific needs of your organization. Our clients consistently report that remote audits reduced their audit costs and provided their staff with significant flexibility.
Learn more about our Audit & Assurance services here. If you have any questions about your organization’s unique situation, please contact us – we’re here to help.
