Technological audit is the first step towards reporting process optimization. It has the following objectives:
- existing process analysis and determination of its labor-intensity;
- identification of redundant calculations, problem areas and bottle necks;
- error risk assessment;
- evaluation of business logic which the calculations are based on;
- assistance to a company's management in getting insight into reporting process and information flows.
Technological audit of reporting process allows of its impartial analysis, problem areas identification and optimization possibility assessment.
Our approach to technological audit
The result of technological audit is a document that comprises schemes of information flows in reporting process, and a report on the results of audit. The report presents bottle necks of reporting process, as well as recommendations for their elimination or optimization.
The report includes the following sections:
- Information flows
- Input data quality
- Quality of MS Excel use
- Adherence to responsibility allocation
- Compliance with IFRS
- The process regulation extent
- Dependence on human factor
Report on the results of technological audit not only represents existing process (As Is), but also contains recommendations on its optimization and automation (To Be). Thus the report can be the basis of terms of reference for IFRS or management accounting automation: with the terms of reference automation can be conducted either within the company or by external consultants.