Remote Audit and Compliance Environment (RACE) 

The Remote Audit and Compliance Environment (RACE) helps accounting firms improve the process and efficiency of compliance-focused audits.  By providing tools to create an electronic file environment through which requisite files are selected, gathered, pre-audited and transferred to the auditor, RACE fosters remote auditing of the files.  Information contained within the files is captured, summarized and evaluated either automatically by the software or manually by the auditor.

 Acct1st Technology Group initially developed RACE to perform compliance audits of post-secondary educational institutions. First, such audits generally require the selection and gathering of 75 or so student files comprised of several hundred pages each. Next, auditors examine the files for the existence of certain required content. Finally, they evaluate the files as to the accuracy and consistency of information, along with the inclusion of necessary signatures and other approvals. 

 With traditional methods, the audit of a large multi-campus school often requires three auditors to be in the field for a week.  Using RACE, it is possible for only one auditor to be in the field for two or three days, with the remainder of the work performed in the auditor’s office.   The client saves much of the usual travel time and expense as well as much of the inconvenience of having auditors in-house.   

Meanwhile, there are significant advantages to the audit firm: 

• Auditors’ time is more effectively employed.
• Firms may choose to have paraprofessionals perform portions of the audit work in a monitored environment.
• Firms may opt to have audit processes performed by remote workers or outsourcers.
• The new process increases audit employee satisfaction by reducing the need for travel.
• Reduced travel costs increase the geographic reach of the audit firm.
• Reduced travel costs often allow a net increase in professional fees.
• As the audit progresses, RACE provides a secure method for collaboration between the firm and the client.
• The firm enhances its image as being technologically competent and progressive.

RACE does not take the place of audit engagement software, but rather is a set of tools and processes designed for use in the compliance auditing.   

In addition, the auditor has the option of providing the client’s internal auditors and compliance officer with certain tools that can continuously pre-audit the client’s work and files in real-time to encourage adherence to compliance requirements. RACE checks for the existence of certain documents, the consistency of information and the inclusion of approvals and signatures, even in an environment where requirements are not static but are determined by the application of complex business rules. For example, a student on probation requires certain items in his file, while such items are not required for other students.  Likewise, a dependent student’s file requires a parental signature and tax returns, but an independent student’s does not.

 In summary, RACE provides significant value to both audit firms and their clients by re-engineering the entire process of compliance auditing.   

 James C. Beach, CPA.CITP

 Acct1st Technology Group, LLC

1250 SW Railroad Ave, Suite 240A · Hammond, LA 70403 · 985.542.9390

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This site was last updated on Tuesday, December 11, 2007