Internal audit software allows companies to review financial information, track audits, implement controls, and compare audit policies to national accounting standards. It also allows for electronic collection of information and setting internal controls.
Internal audit software is a computer program or application that a company can use to review financial information. Company accountants are usually the primary users of this program, although company top management may also have access. Many internal audit software applications allow users to track audits, gather information needed to conduct field surveys, review computerized audit trails, implement controls, and review audit policies against national accounting standards. Large organizations often employ several accountants whose only responsibility is to audit the company’s financial information and data.
Companies can conduct internal audits as often as they like. Public companies may have requirements that result in quarterly internal audits by internal or external auditors. Using internal audit software allows companies to create a digital record for each audit. Businesses can list the individuals who can access the information, along with those responsible for completing certain tasks or activities. Internal auditors may also need to submit their fieldwork documents or other items tested in the software program to give upper management the ability to review audit documentation.
Some internal audit software also allows electronic collection of information. When used in conjunction with other company software programs such as accounting, finance or general management, auditors can create reports listing financial information that auditors will review. Using an integrated audit software system can save a lot of time as auditors can spend more time analyzing information instead of collecting the necessary data. During this information gathering process, auditors can also review computerized audit trails. This trail reports all users who have accessed information and made changes to the accounting system, which is a necessary part of the audit process.
By using internal audit software, companies can set internal controls that limit users’ ability to access or change information. Most companies need to segregate their accounting duties among many different employees. A computerized software system allows accounting managers and supervisors to limit the number of modules or activities an individual can complete on the company’s software system. Auditors often test these computerized controls to ensure that the company accurately separates accounting tasks.
Companies can also implement accounting or auditing guidelines in internal audit software. This allows an immediate comparison of the company’s accounting guidelines with national accounting standards. Retaining an electronic copy of previous internal audits also allows the company to determine whether it is improving or deteriorating in accounting terms or processes. External auditors who need to review this information may also be given access to the software for more official auditing purposes.
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