AUDIT MANAGEMENT SYSTEM: Types and Best Auditing Tools In The Market

AUDIT MANAGEMENT SYSTEM
Image Source: Wolters Kluwer

The success of audits determines the success of regulated businesses. As a result, an Audit Management System is required to ensure that no stone is left unturned. This need is met by the audit management solutions market, which automates internal audit operations through its primary and secondary offerings. The internal audit management system software also assists in managing the complexity of the auditor’s role but not the risk to the organization. The majority of businesses operating in regulatory environments require timely and efficient audits to ensure that operations run smoothly. However, companies can streamline their audit processes to improve quality and uniformity with the help of open source audit management system software.

Audit Management System Software

An audit management system is software that reduces the amount of time and effort necessary for a company to pass an external audit or conduct an internal audit. It, however, accomplishes this by automating audit lifecycle activities to streamline the process. Integrating audit software with a document control system facilitates easy retrieval of all relevant audit program documentation.

Audit management software ensures that audit directives approved by the board of directors are followed. It also helps to streamline and organize the audit workflow and collaboration process. The need for ongoing auditing is being driven by effective risk management and the need to comply with government and industry regulations. Regular compliance audits, for example, reduce the risk of noncompliance for companies ruled by the National Institute of Standards and Technology cybersecurity framework, ISO 27001, or the Payment Card Industry Data Security Standard.

The internal audit management system allows businesses to manage audit planning, audit-related tasks, audit data, and audit processes all in one place. It also enables businesses to create and maintain audit checklists, identify areas for improvement, and implement the processes required to take corrective actions.

Moreover, the system’s advanced features enable businesses to adopt audit-ready best practices standards across industries. Some of these features are built-in remediation workflows, email notifications and alerts, risk assessment procedures, and the ability to do an audit while not connected to the internet. Companies can also use the internal audit management system to track previous audit findings, keep a record of audit reports, and stay on top of preventive actions in the name of continuous improvement.

What Are the Three Types of Audits?

There are three major types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.

#1. External Audits

Generally, outside audits can be extremely beneficial in removing any bias in reviewing the state of a company’s financials. The goal of a financial audit is to determine if there are any material misstatements in the financial statements. An unqualified, or “clean,” auditor’s opinion gives users of financial statements confidence that the figures are accurate and complete. As a result, external audits enable stakeholders to make better, more scholarly decisions on how to audit the company.

External auditors adhere to a different set of standards than the company or organization that hires them to do the work. The concept of independence of the external auditor is the most significant distinction between internal and external audits. When a third party performs an audit, the auditor’s opinion can be candid and honest without affecting daily work relationships within the company.

#2. Internal Audits

The internal audit management system works for the company or organization being audited and reports its findings to the company’s top brass and board of directors. Consultant auditors, who are not employed internally, use the company’s standards rather than a separate set of standards. It is common practice for businesses to hire external auditors when they lack the personnel or equipment to conduct an internal audit of a particular department or function.

Managers and executives use the findings of an internal audit to make adjustments and strengthen internal controls. An internal audit helps maintain accurate and timely financial reporting and data collection. It also helps management by identifying flaws in internal controls or financial reporting before external auditors review it.

#3. Internal Revenue Service (IRS) Audits

The Internal Revenue Service (IRS) also conducts audits on a regular basis to ensure the accuracy of a taxpayer’s return and specific transactions. When the IRS audits a person or company, it is usually seen as evidence of some type of wrongdoing on the part of the taxpayer. However, it is important to note that merely being audited does not prove guilt.

Random statistical formulas compare a taxpayer’s return to similar returns for select audits. They can audit a taxpayer if they have business with another person or company with tax errors. There are three possible IRS audit outcomes: no change to the tax return; a change accepted by the taxpayer; or a change disagreed with by the taxpayer. The taxpayer may owe additional taxes or penalties if they accept the change. If a taxpayer disagrees, they can seek mediation or appeal.

What is an RCM Audit?

The Risk Control Matrix (RCM) is a critical component of the system that enables clients to conduct “data-driven” analyses for a specific process, organization, IT system, project/event, or custom entity. This analysis focuses on determining key objectives, identifying related risks, documenting mitigating controls, and loading supporting test data that validates control effectiveness.

The RCM’s analysis can also be used to verify the design and operation of financial reporting controls. However, you can use the RCM to support other GRC initiatives such as regulatory compliance, IT governance, operational risk, and enterprise risk management, as well as internal audit risk and control assessment.

The Governance Portal supports a variety of approaches to analyzing financial reporting controls. This gives organizations flexibility while also providing a standardized technology to support their efforts. Furthermore, flexible linking options between the RCM’s financial reporting element and its objects make it possible to take these alternative approaches. To ensure consistency in reporting, organizations should adopt a single approach.

Which Software Is Best for an Audit?

Below are the top 20 best audit programs.

  1. Cygna Auditor
  2. Netwrix Auditor
  3. iAuditor
  4. Intelex
  5. Asset Panda
  6. MasterControl Audit
  7. ProntoForms
  8. Form.com
  9. Gensuite
  10. Raken
  11. Onspring Audit Software
  12. Jolt
  13. MoreApp Forms
  14. ZenGRC
  15. Audits.io
  16. AuditBoard
  17. Field iD
  18. Fastpath Audit Trail
  19. Qualtrax
  20. Isolocity

The Best Free and Open-Source Audit Management System Solutions

An open-source audit management system is frequently free to use. Unlike proprietary software, you can customize open-source audit tools. Small or start-up businesses with tight funds can also benefit from free audit solutions. Along with it, one can choose the open-source audit software solution, which does not require any license and is constantly improved. These free and open-source audit software solutions listed below will help you complete your audit successfully.

#1. ADAudit Plus

ADAudit Plus is a free audit management system software solution for making changes to Active Directory online. Your Windows Active Directory changes from time to time. This open-source audit solution records changes and assists in the timely preparation of audit reports.

This simple and effective on-premise auditing solution assists users in determining who has an old session and has locked the account. Users can monitor and generate resource reports for elements such as domain controllers in real-time. 

Furthermore, you can obtain information about active directory objects such as users, computers, groups, and configuration changes. Users can collect audits for workstations that include login history, duration, and login failures. This software stores critical information for efficient auditing.

This software monitors file creation, deletion, and modification across connected systems. You will receive email alerts and notifications when there is a modification to your document. The user interface is well-designed, and the audit trail shows the most recent changes. If you are unable to provide quick answers, ADAudit’s user-friendly reporting functionality will assist you.

#2. Open-Audit

Open-Audit is an open-source audit management system that enables organizations to provide accurate asset location data in seconds. This free audit tool informs you of what is in your network, how it is configured, and when it changes. This tool can also scan an organization’s systems and store the configurations of the devices discovered.

This tool automates your discovery, reporting, and analysis in a convenient, time-saving, and cost-effective manner. It finds all devices and creates a schedule to automate repetitive tasks. The dashboard and chart visualization provide detailed inventory while converting data into easily consumable information.

Furthermore, it’s a good solution for busy IT pros who want to reduce overhead and gain insights from scheduled device discovery and reporting. The Open-Audit enterprise provides organizations with the power, flexibility, and features they need to manage inventory and meet corporate compliance requirements.

If your office has a large number of users, they will benefit from role-based access control and integration with Active Directory and LDAP. The discovery details page contains the summary, details, logs, devices, and IP addresses. It is a powerful and simple-to-use discovery solution that provides advanced users with a great deal of flexibility. This tool also collects a significant amount of data from large and diverse networks, which is easily cataloged and configured into meaningful reports.

#3. Gensuite

Generally, gensuite is a cloud-based audit software that provides intuitive and robust best-practice-based functionality across multiple industries. It enables excellence in compliance and management systems. It is a useful tool that serves as a repository for information and keeps accurate records.

This free audit management software includes a compliance calendar that ensures employees complete necessary inspections and follow-ups. Email reminders notify you when tasks and reports are due or closed. When it comes to compliance, injury reporting, and auditing, this user-friendly software has it all in one place. This application helps organizations control business compliance processes and management systems, especially in the EHS sector.

You can streamline audit teams’ tasks with digital systems, which you can use across multiple sites worldwide. This award-winning audit management software also simplifies regulatory compliance audit inspection processes through its digital and collaborative approach. This software can control flexible configuration, data analytics, and a multi-language interface.

You can easily access forms and information about your team’s recent developments, as well as gain access to features, by using Gensuite Mobile for Audit management. This app involves corporate groups and businesses in tiered compliance audits and program evaluations.

Audit Management System FAQs

What are the types of management system audits?

Internal Organization for Standardization (ISO) audits are classified into three types: first-party audits, second-party audits, and third-party audits.

What is the audit process?

Although every audit is unique, most involve four stages: planning (sometimes called survey or preliminary review), fieldwork, audit report, and follow-up review.

What do you mean by management audit

A management audit evaluates how well a company’s management team implements its strategies and resources. It also evaluates whether management is working for shareholders, employees, and the company’s reputation.

References

0 Shares:
Leave a Reply

Your email address will not be published.

You May Also Like