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Technology |
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Rachlin has made
a commitment to providing quality, efficient services to all clients. To achieve this,
the Firm has made significant investments in both
physical and human resources.
Rachlin recognizes that the most efficient approach to cost
effective service is to leverage highly skilled personnel
with the best equipment and training available. To this
end the Firm has made and continues to make an investment
in computer equipment.
The Rachlin vision of the future of auditing is a paradigm shift
away from audit teams with a hierarchal structure.
Rachlin uses a “flatter” organization of senior
and
experienced people staffing more of the engagement.
The challenge is to bring senior people on the audit
in a cost efficient manner. We have responded to this
challenge through the following methods.
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 The
impact of electronic communication techniques on productivity
is well known. Electronic workpapers continue to improve
productivity by allowing each member of the audit team to
work in a collaborative environment. When working on the
client's premises, a wireless network is established. With
the interconnectivity of this technology in place and mastered
by all members of the audit team, the question is not "who
can we get to do the job," but "who can do the best job."
This commitment to "who" can do the best job transcends
all areas throughout the Firm. Periodically, contact is
made with one of the offices and the files in the field
are synchronized with an office file server. These servers
are backed up daily to ensure against data loss. Once synchronized
with the central file server, other members of the audit
team can view the file, which facilitates ongoing review
with the field team.
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 Technology
is becoming more and more ubiquitous in our daily lives.
This extends to the governmental sector as governments seek
ways to achieve efficiencies by automating processes. At
the same time, security issues are on the rise as organizations
become more dependent upon computer systems and as these
systems become more accessible through internet connections
and wireless devices.
Rachlin has responded to this development by
integrating the computer forensic specialists into the audit
process. The team includes individuals who are skilled
in evaluating system applications and physical controls.
They also contribute to the effectiveness of the audit by
applying computer aided audit techniques (CAAT).
Information technology has inspired the reengineering
of traditional business processes to promote more efficient
operations and to improve communications within and
between organizations as well as with customers, suppliers
and stakeholders. These advances, however, have introduced
new risks that require unique internal controls for ensuring
the security and accuracy of data and the information
systems that produce it. Rachlin understands these
changes and has developed the capability to address
the changing environment. Rachlin has a team of
professionals dedicated to performing audits on
information technology. To perform these audits, the
Firm uses the Control Objectives for Information and
Related Technology (COBIT) Framework.
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Rachlin employs a risk assessment approach early
in the audit process. We believe that with our leadership
in the governmental audit area, we have developed a
wide understanding of how and where things can go
wrong. Most of the time, these problem areas are not
in the finance department but in other departments.
Therefore, a significant portion of the audit budget is
devoted to procedures outside of the Finance Department.
This process, when integrated with our computer
security assessment, stresses the use of the detailed
knowledge of local governments.
This analysis considers how the overall risk identified
in the general risk analysis affects specific account
balances. We consider, in part, the following:
- Relative significance of the account to the financial
statements as a whole
- Volume of transactions
- Susceptibility of the account to fraud
- Accounts that have traditionally required
significant adjustments
- Accounts with complex calculations, judgment,
and accounting issues that have a high assessed
level of inherent risk
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Statement of Auditing Standards Number 99 (SAS
99) imposes on auditors the additional responsibility
to “plan and perform the audit to obtain reasonable
assurance about whether the financial statements are
free of material misstatements due to fraud.” This
standard was effective for audits of financial statements
for periods beginning on or after December 15, 2002.
Since Rachlin believes that this standard marks an
important new professional responsibility, the Firm
decided to implement it for all audits under governmental
or not-for-profit standards with years beginning October
1, 2002 (FYE September 30, 2003). By implementing this
standard early, Rachlin learned a great deal about which
techniques are most effective.
At Rachlin we believe that by redirecting our efforts
through a risk based approach and additional fraud
inquiry techniques, audits are significantly enhanced
which provide greater value to our clients. |
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