During a traditional audit, users of Oracle® E-Business Suite (EBS) run into the same pain point: they struggle to identify and extract accurate data because the information and schedules requested by auditors are not readily available directly from EBS. The data usually originates from multiple sources, the level of detail needed is not found in the data extracts provided by the client, and significant time is spent by high-dollar resources performing manual tasks to prepare for the audit. Our new software, Automated Audit, will allows users to run industry standard audit procedures, proactively identify areas of non-compliance, and more.
The software automates most common substantive procedures that an auditor would use to substantiate the financials. These automated procedures work from a complete accounting representation, not just isolated transactions, while maintaining all links (drill-down and roll-up) to related balances and the original underlying data (i.e. accounts receivable invoices stay linked to underlying shipping information for cut-off testing). Users do not have to load multiple large extraction files. Automated Audit drills down from the trial balance for standard substantive procedures, manages the workflow among different team members and reviewers, allows splitting of the audit scope by categories, ledgers, legal entities, or even regions to different members of the audit team, and generates the audit working papers for each substantive procedure.
Automated Audit® is an out-of-the-box software product that allows the finance team or internal audit team to drill into transaction-level detail to find exceptions or audit concerns to help you prepare for your formal audit process.
Audit Workflow Management
- Ability to assign and unassign focus areas or divisions to each auditor and ability to split audit scope by procedures
- Ability to include notes, attachments, to each procedure, edit the notes and share with the audit manager
- Dashboards and workflows to quickly view overall audit progress
- Ability to view what each auditor is working on, and the number of exceptions encountered
- Built-in approval hierarchy
- Ability to document audit conclutions and disposition of audit exceptions identified
Support for “Completeness Testing”
- Start with a transaction and trace/audit all the way up to general ledger:
- Example: A global corporation transferring inventory internally from one operating unity/organization to another
- Trace OUT and IN transactions from the inventory shipping and receiving perspective
- Tie those transactions with general ledger entries in associated ledgers
- Tie those general ledger entries with general ledger balances under appropriate accounts and accounting periods
Support for “Existence Testing”
- Start with general ledger balance for an account and accounting period and like the balance entry with underlying transactions and related full accounting representation:
- Example: Vouching for a receivables balance account for an accounting period
- Vouch to all the customer invoices associated with the receivables balance
- Vouch customer invoices to shipped product to confirm the validity of those invoices
- Trace any credit memos that were applied on those customer invoices and check for validity
- Reconcile with customer receivables aging report
- Tie all settled invoices to related payments
Perform cut-off at year end: This procedure is to test investments and to help the auditor make sure that no unrealized gains or losses are recognized for any securities except for trading securities.
Tests on accrued income: Helps carry out various procedures where the income earned but not received is checked by obtaining schedules showing balance, obtaining opening balance, making a selection of accruals and examining supporting documents or examining subsequent receipts of income accrued.
Testing amortization: Procedures to investigate unusual variations in current period and prior period ending balances, determining if amortization time is reasonable, comparing actual amounts to budgeted amounts, and reconciling amortization expenses to the general ledger.
Testing in Both Directions: Procedures allow for bi-directional testing, where an external auditor may be testing revenue existence by vouching invoices to the underlying shipping records while an internal auditor may be testing revenue completeness by tracing shipping records to the invoiced sales to ensure all goods shipped have been billed.
Features and Benefits
Intelligent rules-based auditing and assurance tool
Dashboards and workflows to quickly view overall audit progress
Used by internal auditors and finance teams at the database level
Up to 100% transaction and balance coverage and reduced risk
Employ sampling or materiality-based selections of items, balances, or transactions to fit the organization
Audit the complete accounting representation
Ability to group individual balancing segments for any procedure
Instant availability of findings reports and dashboards
Automatic pattern matching ability
Built-in approval hierarchy and review controls
Auto-disposition and Mass Disposition features for most procedures
Easy-to-use interface for financial users (not the IT team)