Remote audits in 2020 proved to be so valuable, some firms are leveraging the technology by going another step further, taking deep dives into cybersecurity risks and searching harder for fraud. Auditors will be heading back to their offices soon and while many will still prefer to meet in person with their clients, some large firms discovered they can tap into auditors with special skills from any of their locations around the country saving time and money. As a nonprofit, or for-profit, here are the three most important ways to prepare for a remote audit.
Determine Audit Needs
Whether you have requested a remote audit or the auditing firm has told you they will be performing your audit remotely, start by reviewing what your auditor will need. For many, this isn’t different every year, and should be easy to gather. The only caveat is how the conferencing will happen and if your nonprofit operations need to be seen by the auditors. They may ask for a video walk-through, during which one of your employees would walk through different departments showing the various operational processes. This method is most cost effective, but auditors realize this may not show them a true picture of operations because employees could choose what they want to show. If this is a concern, auditors could request cameras be installed to run live feeds of certain departments. This will cost more money than you may be willing to spend for a remote audit.
Digitize Audit Documents, Confirm Online Safety
Your nonprofit may already upload documents to a cloud storage platform which makes this step quite easy. The auditors will have their own online portal where you will securely upload the documents needed, but make sure to confirm your own internet is locked down properly.
Prepare Employees for the Audit
The management team already understands from past audits they need to be available during an audit, whether in-person or remote. There will be other employees that need to be available for auditors as well. If those employees are remote, make sure to give them substantial notice and confirm they have the proper conferencing capability required by the auditors.
Numbers 4 Nonprofits works with our clients preparing them for their audit. While we leave the formal auditing to the auditors, we make sure our clients have all of the documents the auditors will need and we review financial statements to ensure accuracy for your external audit. We are invested in managing money with mission.