As businesses become more global and complex, and regulatory requirements and scrutiny increases, the demand for a flexible internal control system that adjusts to changes in business, operating and regulatory environments continues to grow.
Internal controls and process documentation cannot exist in silos or it becomes useless. COSO’s framework emphasizes the need to assess and oversee risks from a holistic perspective. Therefore, the GRC data must sit within a centralized system that uses the information gathered to report data and make decisions about risk, controls and remediation, while feeding the information back into the central repository for true visibility.
A centralized GRC system assists management, boards of directors, stakeholders, and internal and external auditors in their designated roles for internal control and keeps everyone on the same page. In addition to documenting and tracking internal controls and deficiencies, a centralized GRC system provides specific benefits for both internal and external auditors.
GRC software is a dream for internal auditors, in that it helps them:
Identify and see all internal control gaps that exist within the organizationDetermine the severity of the internal control gapsUpdate management status in remediating the gapsReport real-time internal control data to audit committees, management, etc.Customize account reconciliations selections to identify the entire population of reconciliations that need to be testedHave great confidence that they’re looking at the final, approved version of the documents
Similarly, external auditors benefit from GRC software in that they get a one stop shop for final control information and documents that support their financial statement audit. It also allows external auditors to:
Reduce their burden on managementPlan their audit workUnderstand the number and severity of control gaps
A GRC system helps organizations command their internal controls and risk management and adapt to adjustments in regulatory and organizational developments. Visibility and version control are keys to success for auditors – the more they can see, comment, report and analyze, the more effective and efficient they can be in their risk management responsibilities. GRC software allows both internal and external auditors to anticipate, respond, and adapt to risk, and that’s good for business.