The documents, computer files, and other records that are examined during an audit, which show how transactions are handled by a company. An audit trail can be either a paper or electronically based trail that provides documented history of a transaction within a company. An audit trail allows an auditor to trace the financial data from the general ledger to the source document (invoice, receipt, voucher, etc.) and view the full process of a given transaction. The presence of a reliable and easy to follow audit trail is an indicator of solid internal controls instituted by a firm, and forms the basis of objectivity. Conversely, an audit trail with missing documents may be an indication that a company is not adhering to proper accounting practices.
While working or managing a legal firm has its own set of challenges, a streamlined software that helps you manage the audit is a great assistance. Not only does it get you free from a cumbersome yet important task, but also eliminates the chances of human errors that may lead to bigger problems later.
If you are still on the fence deciding whether you actually need an audit software for your legal firm, we have it answered for you.
What is Audit Trail Software?
Audit software automates the process of preparing and executing audits by helping organizations analyze data, assess risks, track issues, report results and manage paperwork.
Various litigations are running in Consumer Redressal Forums, Tribunals, Courts make the Legal Audit very important for Companies, Partnership Firms, Corporates, Individuals, Borrowers, Guarantors and Financial Corporations. It minimizes the risk of anomalies, lacunae, and deficiencies in the documentation, written papers, bye-laws, agreements, and covenants performed. Legal Audit helps to reduce tension, legal expenses, worries at the time of ceaseless litigations.
The Checklist or formal agenda of Legal Audit contains the overall documentation or financing policies or operational areas or objectives or trademarks or copyrights or assets formulated by the company comprising the press release and Companies’ policies, objectives and programmes under the view of legal laws.
Why is Legal Audit Recommended?
The Legal Audit is very prudent in order to prevent laws generated with copious and serious discretion and aware to divide with any legal actions.
Arising in upcoming future and resultantly may end in getting fined, sued, penalty imposition and prosecuted in evadable legal actions due to lacunae or deficiencies residing in the agreements, statutes, undertakings, documents and laws accomplished by the companies, partnerships, individuals, Corporate Undertakings, Governmental Undertakings and banks Undertakings.
In outstep of the laws and provisions of the Governmental Enterprises, Organization, Company, for instance, moving from the Articles of Association of the Private Limited Company and the laid down Memorandum and laws relying on certain acts and enactments in force.
How Audit Software Can Help Your Legal Firm?
1) Reduce the duplication of effort
Every auditor has experienced the frustration of carrying out an audit on site, filling out reams of paperwork, then having to return to the office to type up their notes. It’s an unnecessary duplication of effort, and adds no value to the audit process.
Audits involve a lot of preparation. It means finding the right paperwork, and making checks beforehand to reduce the risk of non-conformities arising.
It wastes so much time!
Using audit software means you can have information ready at the click of a button. Customisable reports make it easy to display data visually, if you need to. There’s no more paperwork – and preparing for an audit is much quicker as non-conformances are quickly highlighted and can be addressed in good time.
You can gather evidence and answer questionnaires on the spot. The Audit management software allows you to download the audit, work offline during the audit – attaching relevant data as you gather it, then uploading it as a completed audit once you have a wifi connection. There’s no duplication of effort, saving you hours or even days for every audit you carry out.
2) Improve the accuracy of data captured during an audit
Paper audits are not only time-consuming but restrict you to writing notes or completing a checklist without being able to provide accompanying evidence. And there’s significant scope for human error and bias, as a description of a non-conformance can be as detailed (or as vague) as you choose.
Audit management software means you can capture evidence in real time and attach any type of common file, including videos, photos and sound recordings.
The advantage of being able to attach evidence is that non-conformances can be viewed the same way by everyone –there’s no need for interpretation. This process also eliminates the need to make lengthy notes to describe an issue, once more saving considerable amounts of time.
3) Gather more information during every audit
Chances are you’ve faced an audit and found yourself pushed for time, as you work to make sure your business is compliant and gather together the relevant paperwork. Because of this rushing around, you’re more likely to make mistakes and have your attention diverted away from your core duties. A missed file or unclear paper trail takes up more of the auditor’s time and risks them having to hurry the rest of their audit.
The time limits imposed upon an auditor mean information can be missed or incomplete, especially if a problem occurs to delay access to vital details. This means non-conformances may be missed, which in turn could turn into larger and more costly business risks.
As Audit management software removes the need to do audits on paper, auditors have more time to analyse the organisation in detail and deliver a much broader and comprehensive review of operations. Instead of rifling through paper checklists and writing up notes, they can take photos, record voice notes and video clips, and take the time to get into those granular details that are often overlooked.
4) Eliminate ambiguity in audit reports
What one person says is a major non-conformance, another may describe as minor – and it’s difficult to prove when the only evidence that exists is a few pages of the auditor’s hand-written notes.
Audit management software takes away the confusion and ambiguity by making sure evidence is gathered and attached to an audit on site, there and then.
And reports are no longer affected by bias – it’s all there in black and white (and colour, if multimedia evidence is attached!) when you come to review the audit.
5) Demonstrate compliance throughout the audit trail
Working from paper trails makes compliance difficult to prove – one missing file and you risk non-conformances or failing the audit completely. When your business must comply to regulations and standards, downtime to correct issues can be very costly.
Audit Manager allows you to easily plan and schedule regular internal audits, with automated workflows triggered when a finding is raised. This makes it very easy for you to demonstrate your commitment to regulations and other quality standards, and delivers a full and comprehensive audit trail for anyone investigating your compliance.
Want to Build Legal Audit Software?
Explore an extensive range of software services that Matellio offers with the audit software. Our experts are not just well-versed with a wide array of technology stack, but also hold an extensive experience of over 20+ years delivering cutting-edge solutions to global businesses. To know why our clients choose us over and over, book a free consultation with our team right away.
