With the world going digital, many companies out there are going to cloud-based record keeping. This recordkeeping promises a higher level of security and a reduced probability of inaccuracies and misrepresentations. Like desktop-based records, cloud-based recordkeeping also requires audits.
These audits basically help businesses keep their
practices on track and in strict adherence to the business regulations as
prescribed for commercial companies. Businesses, with the help of these
auditors, are able to streamline their operations effectively.
This article aims to introduce you to the key areas
underlying the job of an auditor when a company conducts cloud-based record
keeping.
Five areas auditors test in cloud-based bookkeeping
Auditors and accounting experts have a tough job to
do. Their role is a highly responsible one as well. They need to stay impartial
when imparting their services for an organization. Their key role is an assessment
of operational practices and identification of loopholes, if any, in their
recordkeeping process.
Key areas underlying an auditor’s job are as follows:
1. Organization and administration
When a company is keeping its books and records on a cloud-based system, the auditor will have to inspect the organizational structure of your
company. He/ she will also be responsible for inspecting the job positions to
develop a thorough understanding of the roles and responsibilities of employees
working in various departments and teams. Against this backdrop, the need
for accounting and bookkeeping cannot be further emphasized.
The auditors may conduct interviews so as to determine if the
company possesses the technical competencies required for cloud-based
recordkeeping. If your company has
conducted background checks, the auditor will take those under observation as
well.
2. Communication
The auditors will examine and evaluate the policies and all the
procedures relevant to your workplace. They will evaluate whether all employees
have access and authorizations as needed in light of those policies and
procedures. The terms and regulations
documents will be one of the key points of focus when it comes to examination
and inspection of the communication practices of your organization.
They will identify whether these documents are effective in
clearly defining and conveying the roles and responsibilities of all people
associated with the organization. The auditor may inquire about your management
regarding their ethical codes and implementation practices pertaining to those
codes.
3. Risk assessment
In every company’s practices and procedures, there are some strong
and weak links. Since the auditors are experts in help businesses excel in
their operations and practices, they will help you identify the small and big
risks. The risk assessment already conducted will be one important area for the
auditor to inspect.
As a result of the inspection of risk management activities, they
will present you with the recommendations and policy measures required to
mitigate the risks. With the help of one of the top audit firms in Dubai, you
can carry out a risk assessment and ensure foolproof data accuracy. If there
are already some mitigation steps in place, they will analyze their
effectiveness and provide guidelines about those as well.
4. Logical and physical access
The auditor will observe the security and access related practices
of the office closely. Whether the office entrance requires a badge for
employees or not is one of the decisions that auditors help you make. Similarly,
they inspect the administrator-level access and authorization of the
cloud-based records.
The password policy put in place for accessing and entering the
network may not be adequate to protect the integrity of records. The auditors
inspect all logical and physical access protocols and provide the management
with suggestive measures.
5. Monitoring activities
Every organization indulges in documentation regarding the
business process and systems. This documentation is reflective of the strengths
and weaknesses of the organizational policies and practices. The auditor will
inspect this documentation to identify the risk factors and vulnerabilities of the
system as a whole.
The system configuration also needs inspection so that the auditor
determines whether the important notifications are provided in due time for
required action. These notifications are important to impart whenever there is
any vulnerability ad failure in the system. Lastly, the auditors help assess
the authenticity of the evidence suggesting the vulnerabilities before the
remedial actions taken for the notified vulnerabilities
Indulge in cloud-based record-keeping now!
It is not only fancy to hear, and it is actually a very practical
solution for commercial companies in the twenty-first century. You will need
the help of professional auditors and accountants so as to incorporate it
seamlessly into your company’s processes.
They will help you identify loopholes in ethical codes and policy
documents. They will identify the security needs for your organization
pertaining to bookkeeping. They might as well assist you to monitor activities
and manage changes.
Hire the best
professionals for the job!
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