Role of Virtual Data Room in the Audit Process

To achieve the main goal of the audit – verification of the reliability of the formation of financial (accounting) statements, it is necessary to correctly plan the audit with the virtual data room.

How to Conduct the Audit Processes with the Virtual Data Room?

Audited reporting, in turn, opens up new opportunities for lending, provides additional confidence to business owners and top management, and improves the company’s image when it goes public. Planning the audit in detail completes the audit preparation phase. In the course of this work, the necessary information for the audit is finally formed, the conditions for the audit are clarified, and the time and order of audit conversations are specified.

The conditions for conducting an audit at enterprises may be different. The audit may require administrative support, the allocation of an escort (for example, a representative of senior management), compliance with special safety requirements, and the use of special equipment or workwear. All these issues must be resolved before the opening of the audit.

The virtual data room also integrates key features, including skill registration, linked accounts, and basic communication intent, to offer users a wide range of seamless interactions and user experiences. In addition, the features of the template include many examples of reusable communication skills. Separate skills are integrated into the virtual assistant in order to implement several scenarios at once. It is highly recommended to use the virtual data room for the audit process because:

    1. Due to the speed at which files are transferred, performance is increased simply by reducing the time spent waiting for files to be received or sent.
    2. Monitoring capabilities and email notifications ensure that no files are lost.
    3. International collaboration is made easy with fast file transfers. Wherever you are, fast file transfer solutions can help you achieve your organization’s goals.

What Is the Role of Virtual Data Room in the Audit Process?

The use of traditional solutions for the audit process, such as email or FTP, can no longer properly meet all security requirements, and the use of third-party file hosting services can even lead to serious consequences for the company. The virtual data room systems are an effective tool for solving the problem of file sharing and satisfy most of the needs of a modern organization. In today’s market, there are various software products that have wide functionality and which you can choose based on the needs of the company.

Preliminary collection of audit information is carried out with the help of a virtual data room, where the following information is entered:

      • regional and industry specifics of the client’s activities (geographical, economic, tax conditions of the region);
      • the financial situation of the client (solvency, the possibility of overcoming the economic crisis);
      • organizational and technological features of the client’s activities (to understand the formation of the cost of products);
      • information on the qualification level of employees responsible for the formation of accounting (financial) statements.

A virtual data room is a storage hosted in a private cloud or within a secure perimeter of an organization. Features mentioned include single sign-on, security timeouts, tracking, and file locking. If security in the data room is supported by technical solutions that require certification, then the operator himself will need to obtain these certificates. Mandatory certification, in accordance with the laws, requires only security tools that use cryptography.