In recent years, the Compliance burden has increased, and organizations that breach the rules have come under intensified scrutiny. As a result, the role of Compliance team's and their influence within the business have grown as well. Many Compliance teams have developed their own controls and audit procedures to enable them to monitor and measure the effectiveness of the organization's governance and Compliance processes. But they are not the only ones involved.
The role of an external auditor is critical for achieving the objective of organizational governance and Compliance. Traditionally viewed as an organization's third line of defense, auditors are responsible for providing reasonable assurance that the company complies with governmental and industry-based regulations.
But in practice, auditors and Compliance teams often work in silos. Differing – or even conflicting – approaches and communication styles create the potential for duplication, omissions, and even a lack of clarity about who is responsible for complying with every risk management obligation. How can auditors and Compliance teams work more closely together to minimize this siloed structure? In short, technology.
When auditors use technology that integrates Governance, Compliance, and Risk Management, they can break down these silos, streamline processes, centralize business assets, and ensure that all departments work collaboratively. In fact, the use of sophisticated technology and data analytics in an audit is fast becoming a standard operating practice as auditors embrace the digital-first approach to engagements.
A global survey highlights the top benefits companies expect from their auditors’ technology: 90% want deeper insights into risk and control vulnerabilities, and 86% want to benchmark against KPIs and increase data coverage.
According to the Journal of Accountancy, “It's important to state that for all of technology's benefits, it is not intended to replace humans in the audit. The human qualities of evaluation, analysis, and judgment remain an irreplaceable part of the audit process, and the use of technology can give the people on an audit the ability to focus on those higher-level skills rather than getting bogged down by mundane, rote processes.” Research by SSRN underscores this point by explaining that as automation becomes integrated into the audit process, accounting firms are looking for auditors with more cognitive and social skills. That’s because tasks that require human interactions and more high-level thinking – are in high demand and unlikely to be replaced with technology.
The bottom line: Auditors that don't embrace the digital revolution will be left sitting on the bench.
Traditional manual audits have long since been a source of frustration for auditors and auditees. Manual processes, spreadsheets, screenshots, and similar tools to review controls, are labor-intensive and time-consuming. Technology can alleviate much of the burden, and turn the third line of defense into a collaborative and important one. Here’s how:
To unlock the power of technology in audits while substantially reducing Compliance costs, the leading Compliance service provider Coalfire has partnered with anecdotes, one of the world's leading security technology engineering firms, to incorporate advanced automation capabilities in its Compliance Essentials platform, enabling faster time to Compliance and greater visibility for clients. Customers can manage Compliance workflows and risks, automatically collect evidence and execute audits within the platform – making it one of the market's most comprehensive Compliance and risk management automation solutions. The partnership delivers a powerful combination of state-of-the-art technology and professional services to help Compliance teams and “third line of defense” auditors stay ahead of the curve and achieve Compliance faster.