In the context of a rapid change in internal factors of development and the instability of the external environment of the functioning of the modern auditing organization, the role of the control function of management increases significantly, the task of which is to timely identify threats and risks of reducing the effectiveness of their activities. This determines the increased attention to the formation of data room providers and the systematic conduct of external control by the state and professional organizations (self-regulatory organizations for certain types of activities).
Automated Information System of Modern Auditing Organizations
The description of the data is called metadata. Metadata is stored in a part of the database called a catalog or data dictionary (DSS). Knowing the format of the metadata, you can query and modify the data without writing additional programs. One and the same database can be used to solve many applied problems. The presence of metadata and the possibility of information support for solving many problems are fundamental differences between the database and any other set of data located in the external memory of the computer.
Increasing requirements for the auditor are associated with certain changes in the situation in the audit services market. Firstly, the market for audit services is shrinking due to a reduction in potential clients who meet the criteria for conducting a statutory audit. Secondly, in connection with the development of the system of internal control and internal audit, the demand for proactive audit is decreasing, the structure of services accompanying the audit is changing. As a result, competition in the audit services market is significantly intensifying; many audit organizations can hardly withstand the new requirements for audit quality presented by customers.
Why Do Modern Auditing Organizations Require Software?
World financial centers are influential regulators of global financial flows. However, this is by no means the only function of such centers. You can also highlight the following:
- Analytics and information processing. Financial centers usually interact with renowned consultants, such as McKinsey, and financial experts, which allows them to conduct high-quality market analyses and predict them fairly accurately.
- Strengthening the global financial system. Together with leading market players, the MFC is planning and developing a strategy for the regulation and management of the global financial system.
- Restructuring of public debts. MFCs manage international debt and structure government debt so that repayment does not hit the domestic economy. This is another method to ensure the sustainability of the global financial system.
In this regard, the importance and relevance of the implementation of control over the quality of the work of audit organizations, the preparation of methodological recommendations and regulations for quality control by self-regulatory organizations of auditors (SRO), and bodies responsible for the country’s audit activities. At the same time, much attention is paid to setting up an internal control system in audit organizations.
Such exchanges are headed by elected exchange bodies. However, the Exchange Commissioner oversees exchange activities and officially registers exchange rates. Similar exchanges operate in Austria, Switzerland, and Sweden. It should be noted that at present, the business community in all countries has begun to impose slightly different requirements for the audit, in particular, the auditor’s attention should be directed not only to checking the correctness of accounting and drawing up reliable and complete reporting but also to forming an opinion on the possible further development of the audited object, the continuity of its functioning and potential growth.