Ensure your audit trail with Impero
Audit trail and internal controls
The audit trail pose a specific challenge in terms of internal controls. Internal controls over financial transactions are part of a company’s full audit trail, and auditors – internal and external, and not only a company’s statutory auditors – must both understand and have documentation for the flow of transactions and the outcome hereof, including how transactions are initiated, recorded, authorized, processed and reported.
Audit trail documentation can provide proof of compliance with identified regulations, rules and standards, as well as identify areas of non-compliance. A well-managed audit trail is a key indicator of good internal business control and contains all relevant details and information regarding the transaction.
Complexity on documentation
The transaction itself is usually straightforward – the concept of debit and credit is fairly easy to comprehend, but the controls over the transactions are often more complex to document. This is due to the processes involved of first documenting the transaction and then forwarding the documentation to the right people, and perhaps entering the details in a joint-balance sheet, as well as the involvement of different employees.
Using Impero, it is possible to take the complex, time-consuming task of managing the audit trail and turn it into controls – an approach that simplifies the compliance burden. In Impero’s intuitive cloud-based solution, you can design your control performance specifically for each and every control: sometimes you need a simple yes/no response, other times you need full documentation, checklist questions, self-assessment voting buttons, etc.
Keep a well-managed audit trail using Impero
Impero is very easy and intuitive to work with, and the setup of a control is done in less than five minutes, without having to involve the IT department or other specialists. The solution is simple, but flexible, and can be tailored to your exact control requirements.
However you choose to structure your controls, the reporting module will ensure that you have a complete overview of their performance. This means that you can keep track of the progress of your internal controls and identify areas where action is needed.
Everything is logged in Impero, so that both you and your auditor can see what is done, when, and by whom. This substantiates an extensive audit trail: and you can give your auditors view access to the controls with a simple click on your mouse. This will cut down auditors’ travel time and expenses, but also minimise the time spent on retrieving documentation. No need for long mail correspondences on missing documentation, just grant your auditor access to Impero.
Using Impero to manage the audit trail
At Impero, we have specific clients, where auditors base the audit evidence specifically on the control evidence from Impero. This enables a full centralization of the control-based audit work and allows group auditors to share extensive comfort memos with their affiliates around the world, to minimize the global audit work.
Other clients use Impero to run their SOX controls with all the particular requirements that it entails. Impero serves as the single solution for these companies and this allows management to easily perform tests of the controls.