Client-Initiated Audits

The value of a proactive and continuous self-audit prior to any external, independent audit cannot be overstated.  

Given the sheer size and complexity of so many IT projects, it is almost certain that any rigorous audit will reveal some sort of error or shortcoming. CFOs and CIOs can protect themselves and their lines of business from potentially serious (and embarrassing) audit findings through “Client-Initiated Audits”—the “clients” being CIOs, CFOs or any executive responsible for an organization’s critical line of business that may be subjected to an independent audit. 

BINARC and Zenius Corporation have developed a joint practice to support customers in performing robust Client-Initiated Audits using a methodology suited for both financial management systems/operations and IT infrastructures/ecosystems. 

The benefits to Client-Initiated Audits are numerous and include:  

Nothing defines good leadership more than quickly identifying and solving problems that pose risks to an organization’s mission. Client-Initiated audits can uncover problems that may be apparent but perhaps “too close” for staff at most of the organization’s levels to see. Such problems can range from a simple policy change to a slight systems or operations modification.

2. Tackle Major Flaws Early

The last thing leadership can afford is an outside auditor finding a critical flaw in their systems or operations. These flaws can ultimately decrease confidence in your security posture or the very data spawned by mission-critical applications. Quickly getting a handle on major flaws can mean the difference between being hailed as a hero or needing to update your resume.

3. Strengthen Policies and Procedures

Some problems can be quickly resolved by updating and modifying policies and procedures. For example, simple “separation of duties” procedures have been proven to remediate many problems in IT operations. Many organizations fail to adequately update their policies and procedures, and a Client-Initiated Audit can uncover opportunities to do so—and avoid additional pitfalls down the road.

4. Develop Robust Corrective Action Plans

Performing a Client-Initiated Audit can prove invaluable not just in identifying problem areas, but further in helping CFOs and CIOs understand the full nature and extent of the problems—which is critical to developing effective corrective action plans. Without a documented plan that demonstrates a full understanding of the problems and which serves to guide the remediation approach, organizational leadership may well still be deemed to have “fallen asleep at the wheel.” While a detailed plan may not offer a solution for funding and time constraints, it should convey a logical and sequential approach for resolution. 

5. Reduce Independent Audit Stress

Not surprisingly, knowing that you have found most (if not all) of the weaknesses and vulnerabilities in your financial management operation or IT ecosystem will allow you to sleep a little more peacefully as you await the audit report from the independent reviewer. If done properly, a Client-Initiated Audit can all but eliminate unpleasant surprises.  

For more about our joint Client-Initiated Audit Practice, see our blog, 5 Reasons to Conduct Client-Initiated IT and Financial Audits.