Audit-proofing your Organization with RSM

One of the chief concerns of organizations of all sizes is the dreaded audit. In addition to any potential financial penalties, the time it takes to contend with an audit as well as the reputational damage they can inflict can cause massive negative impacts.

The best way to beat an audit is to prevent one before it starts. Companies should always take care to maintain strong financial health, adhere to regulations, and build stakeholder confidence. This can indirectly contribute to potentially fewer issues arising that might necessitate additional scrutiny or specific types of audits. Yet heading off an audit is easier said than done.

Audit-proofing

Companies often need help insulating themselves from audits. In these instances, many turn to trusted partners like RSM. RSM’s technology-enabled audit and assurance services, powered by RSM Luca, their global digital audit ecosystem, aim to deliver insights that enable confident business decisions. By integrating sophisticated technologies and efficient processes with robust industry and market data, RSM provides a deeper understanding of a business.

This can lead to more accurate financial reporting and effective controls, which are fundamental to maintaining trust with stakeholders and can reduce the risk of triggering certain types of audits related to financial misstatements or internal control weaknesses.

RSM emphasizes pairing deep industry knowledge with innovative technology to deliver high-quality audit and assurance services. Their auditors possess a strong command of industry-specific business dynamics and accounting practices, along with thorough knowledge of regulatory requirements and accounting standards.

This ensures that companies receive high-quality assurance, which is crucial for building investor and stakeholder confidence. Strong confidence in financial reporting and adherence to standards may contribute to a more positive audit experience and potentially reduce the likelihood of investigations or more in-depth audits due to perceived risks.

Adhering to Regulations

In the realm of financial services regulatory compliance, RSM offers dedicated client services to help organizations navigate complex risk environments and all-inclusive regulatory requirements. Their consulting professionals provide guidance on understanding regulatory changes, employing technology solutions, responding to remediations, and assessing compliance programs.

This proactive approach to compliance, including assistance with anti-money laundering (AML) sanctions, fair lending programs, anti-bribery and anti-corruption measures, and UDAAP (unfair, deceptive, or abusive acts and practices) testing, can help financial service organizations avoid regulatory violations and enforcement actions. By ensuring robust compliance frameworks are in place, companies can potentially mitigate the risk of regulatory audits or examinations that are triggered by non-compliance.

RSM also provides actionable business insights through a combination of digital tools and the services of their professionals. These insights support confident decision-making, which can lead to more stable and predictable business operations, potentially reducing the likelihood of situations that might trigger unforeseen audits.

What This Means for SAPinsiders

An ounce of prevention is worth a pound of cure. Companies should focus on high-quality audit and assurance services utilizing advanced technology, coupled with their comprehensive financial services regulatory compliance consulting, can significantly contribute to stronger internal controls, more accurate financial reporting, better adherence to regulations, and increased stakeholder confidence. These factors can indirectly lead to a reduced risk of certain types of audits stemming from financial misstatements, control deficiencies, or regulatory non-compliance, ultimately fostering a more stable and less scrutinized business environment.

Outside Perspectives are invaluable. Companies may be unable to see what issues they have from the inside. Bringing in an outside perspective like RSM can help businesses to find any potential gaps or issues that could cause them to be audited.

Establishing a compliance framework is essential. Businesses should set up GRC frameworks. This will ensure that all members of the organizations understand what is expected and adheres to important regulations.