What is meant by Digital audit?
Digital audit refers to the use of digital technologies and software solutions to conduct audits by tax authorities or internal audit departments. Instead of traditional paper-based methods, electronic data and automated analysis techniques are used to audit a company's tax and financial compliance. By digitizing audit processes, auditors can work more efficiently, and companies can better manage their documentation and records to facilitate smooth and transparent audits.
Typical features of software in the digital audit area include:
- Data Import and Integration: Import and integration of electronic data from various sources such as accounting systems, ERP systems, and electronic documents.
- Automated Audit Procedures: Utilization of automated audit procedures and algorithms to identify tax risks and irregularities.
- Document Management: Management and archiving of digital documents and records to support the audit process.
- Analysis Tools: Provision of analysis tools and dashboards to visualize audit data and results.
- Audit Trail: Ensuring audit trail integrity and security of audit data through change logging and access control.
- Communication Platform: Providing a secure platform for communication between auditors and audited companies, as well as for transmitting audit findings and documentation.
- Compliance Monitoring: Monitoring of compliance and tax regulations, as well as automatic notifications of changes or new requirements.