Understanding the ever-changing technological environment is one of the core purposes of an Internal Auditor. Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization carry out its goals by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of Risk Management, Control and Governance processes. Internal Auditors are the Trusted advisors of an organization. They should understand the period in history that the world is in. They say, “the Future is Digital” and it safe to conclude that the future is here, and it is now. An internal auditor as, Corporates’ Trusted Advisors, must be aware of the many technological methods and processes companies are engaging in which include Cloud computing, Accounting, and digitalization.
Digital businesses use technology to create new value in business models, customer experiences, and the internal capabilities that support its core operations. The term includes both digital and traditional processes that are transforming their businesses with digital technologies. A business is considered a digital business when it uses existing technologies, embraces the concept of digital transformation, and the cultural shifts that it required as well as exploring new business models.
Digitalization is a trend that is affecting the current business environment, and this should be brought to the attention of business owners which includes management and boards by the Trusted Advisor. The digital age has ushered in a radical change to jobs, especially that of the Chief Financial Officer to become a virtual one. People must be provided with the right training and the right skills to prepare them for an ever-changing world. An Internal Auditor must recommend Upskilling to improve the organization and make it relevant for the future. Upskilling is a process by which people are equipped with relevant skills and competencies to match them to the changing technological environment. Thus said, automation will inevitably replace many workers. This has created space for Cloud Accounting. The Internal Auditor should be aware of the great advantages of Cloud Accounting. Cloud Accounting is a terminology that is used for the outsourcing of accounting processes that the organization has previously been practising and transferring the accounting responsibilities to a third party that manages it remotely. All the business must do is to remotely log in and access their financial records in real-time. This enables the business to concentrate on their core mandate which is growing the business while a third party manages their I.T systems and accounting processes.
Today’s business leaders are dealing with challenges of how to fundamentally redefine their businesses for the digital age. Didiserv provides clients with the ability to unlock growth and innovation by strategically adopting the next-generation cloud and workplace environment that are used to enable the workers to work where they live and to collaborate efficiently. The collaborations offered by Didiserv help its clients embrace their journey to Cloud and transform their organizations to thrive and support relevance in a rapidly changing world. In the past as well in current time, finance managers and directors have been filling out spreadsheets manually and financial reports were only generated once per quarter and decision-makers at all organizational levels could not share and analyze financial data promptly. This made the decision-making process slower, cumbersome, and ineffective. Hence the operation of the company could not be improved. When it comes to the Internal Auditor of the organization, their responsibilities and duties are to do the following:
· Ensure the reliability and integrity of financial and operational information
· Ensure Effectiveness and efficiency of operations
· Safeguarding of assets
· Compliance to laws, regulation, and contracts
Considering the above, forward-thinking, technologically enlightened Internal Auditor will recommend Cloud Accounting in a bid to ensure more reliable and dependable financial information. With the use of Cloud Accounting and Artificial Intelligence safeguarding of organizational assets will improve. One of the companies’ assets that is at elevated risk is Cash. Cashflow is the essence of the business but keeping track of it has been a challenging and difficult undertaking for many organizations. Didiserv can help business owners manage their short-term cash flow by connecting them to their Cloud Accounting software and using artificial intelligence to supply real-time viewing of cash balances as well as future cash projections. This helps reflect the true cash flow positions of an organization.
When it comes to the effectiveness and efficiency of operations, cloud accounting has translated to measurably business results. Automation of processes has increased efficiency by 50%. The time that has been previously spent on labouring over manual spreadsheets and endless emails between management will transfer to time invested in the real growth of the company. In simpler terms, it perfects the client’s operations. This would have been made possible due to Data entered using Cloud system and displayed for open review on a regular (almost hourly) basis. Stakeholders and relevant parties will then quickly review the financial data and make timeous and well-informed decisions.
An internal auditor must ask themselves “has the Organization adhered to rules and regulations?” Compliance to tax troubles has been a challenge with many businesses. However, with the help of migrating to cloud solutions business are finding their years of outstanding tax returns being cleared professionally and promptly. The text receipts are also digitally filed.
The world of accounting is changing, and Cloud Accounting and Business Digitalization are leading the way. Below are some of the advantages of Cloud Accounting and Digitalization a Trusted Advisor must bring to the attention of their organization’s management:
o Secure online software
o A fully tax-compliant business
o End-to-end accounting
o Instant management reports
o Annual Financial Statements
o Competitive web designs
o Monthly payroll administrations
o Admission of statutory returns
o Virtual management meetings
o Reliable decision-making processes.
In conclusion, innovative technologies should transform how, and an Internal Auditor does their work. There is a need to be up-to-date and in line with technological changes. The move to Cloud-based Accounting practices cannot be ignored as a recommendation to organizations by astute Auditor. By use of artificial intelligence, there have been serious anomalies unearthed in many organizations’ General Ledger Accounts. If this primary book of account is mistaken it follows that the Financial Reports of an organization are not a true representation of the financial affairs. This later makes the decision-making processes to be based on faulty information. Artificial intelligence and automation will supply opportunities for staff and technology to communicate in a new way which will inevitably result in increased efficiency and accuracy.