Virtual Audit

A virtual audit is quickly becoming popular and making its way to the people's preference due to its efficiency and time and the cost-effective execution of work. The virtual audit enables easy data sharing and maintaining data protection protocols.

What are Virtual Audits?

Virtual audits are the procedure to conduct the audits electronically and paperlessly. In this, the industry and the government are not running any face-to-face interaction. The data exchange is conducted electronically using word files, excel sheets, PDF files, JPEG, and images.

In easier terms, a visual audit is called a remote audit or e-audit that is absolutely the same as the traditional audit; the difference is in the usage of electronic mode.

How is Virtual Audit conducted?

The procedures for conducting a virtual audit are as follows:

• To conduct a virtual audit, it should begin with the auditor requesting all the necessary information from the auditee, such as SOPs, org charts, quality manuals, etc.
• The auditor must ensure that data privacy is maintained as per the requirements and prescribed by HIPAA and GDPR.
• The auditee must provide the records in a manner and format that is easily understandable. Documents can be shared in a read-only mode to maintain confidentiality and control easily.
• If required to share the documents with his team or any other professional, the auditor must maintain the data privacy regulations.
• It is recommended that the audit procedure remains limited to one or two designated personnel.
• The technology being used for audit and data sharing purposes should be checked for any chances of a data breach.
• The communication between the parties should be clear, and the web meetings should be organized well.
• The audit plans should be prepared after enough consideration.
• A closing meeting should be held in a general manner using the video conference for the confirmation procedure.

What are the benefits of a Virtual Audit?

The e-audit or virtual audit has certain advantages over the traditional audit, are:

• Cost and time-effective: As the data is accessible from anywhere using cloud technology, the cost of printing, making copies, segregating the copies, transportation costs are saved. Moreover, the documents can be uploaded at any time, so there is no requirement to assign a person and make an appointment to send the files and hand them over to the auditor.
• No Location Restrain: Forget those days when the work used to get delayed because the auditor is in another city. In a virtual audit, the auditor can carry on with the work from any place. Also, if the auditee requires sharing any data in the control of a person in another location or country, it can send it across easily using cloud technology.
• No Office: It does not mean that a company or a firm does not require a registered address, but it can avoid having a setup and space for the client meetings. As the meetings are held online, the meetings are getting quicker, preventing any delay in the execution.
• More Efficient Team: As working remotely implies working at one’s comfort. Therefore, productivity is getting better.

The virtual audit came into wide use at the time of the COVID-19 pandemic. Despite ce3rtain problems, the users mainly realized the benefits of e-audit. As preferences change, the problems will soon be resolved, and the practice will take its place in the market.