The spread of COVID-19 has prompted many firms to turn to remote or virtual audits to maintain assurance activities while travel restrictions and social distancing measures are in place. Remote auditing involves using techniques like video conferencing, email, and telephone to gather audit evidence instead of on-site meetings and facility tours. While remote auditing allows auditors to avoid travel and focus on higher risks, it also comes with disadvantages like lost direct interaction and inability to audit certain processes requiring physical observation. Planning and communication are critical to ensure remote audits can successfully meet their objectives.

2. The spread of COVID-19 has prompted travel restrictions worldwide and remote work policies, it also
effected routine in-person audits and official on-site inspection activities. To avoid delays and canceled
or deferred audits, many firms are turning to remote or virtual audits to maintain their assurance
activities until operations become normal.
It is due to corona virus crisis that audits departments are looking for new ways to work, travelling less,
working from home more, and focusing on risks that are critical to the business. It could have a
positive effect on high rate of turnover in internal audit and may help auditors attain a better work-life
balance.
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Remote Auditing: The Pros and Cons

3. Remote audit, also known as virtual audit, refers to an audit conducted remotely, using remote
techniques like video conferencing, email and telephone to obtain audit evidence. Just like technology,
audit is evolving. What was once an on-site exercise including face-to-face meetings, discussing
context and leadership, touring facilities of a company for collecting audit evidence, audit is now being
carried out using electronic methods.
The overall aim is to evaluate the evidence objectively to determine the extent to which the audit
criteria has been fulfilled. Auditors in a remote audit adopt standard auditing techniques, those used
during on-site audits, including being open minded, diplomatic, listening and being respectful to the
auditee. Auditors need to be versatile and collaborative, and continue to ask important questions
related to the scope of the audit.
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4. ‘Audit burnout’ is a common term in the audit training and certification, particularly if auditors are
carrying out several one-day audits over the week, extensively travelling and writing several different
reports each week. Remote auditing can give the opportunity for a different approach and outlook,
adding value to both auditor, auditee, and the overall audit process.
With work-from-home becoming a norm, many auditors completed tasks that were not so
complicated but the concerns for higher risk of theft, fraud, misappropriation and malpractice still
remained. They realized that they would remiss if they didn't ask the right questions and adapt plans
to the risk in their environment.
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5. The Advantages
Many auditors found that not only remote working is possible, but it can also add value and
Working remotely has forced internal auditors to be more proactive and to think outside the box.
Auditors who are provided with electronic work papers, laptops and cloud-based audit
system by their companies are at an advantage when working remotely. The more information they
have at their fingertips, the more remote auditing is possible. Sharing data, documentation and
processes review and conducting interviews without the need to commute to the audit site are
of the advantages of remote audit.
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6. One of the impressive example of remote auditing is auditing banks. Using security cameras and other
applications, auditors were able to observe branch operations, control, and even cash counting. The
branch staff were being observed through cameras, which made is almost nearly impossible for a
branch employee to perform fraudulent cash count. This approach is going to continue even after
corona virus as it allowed auditors to spend less time on travelling, limiting contact and reducing cost.
Another important audit task that went virtual is meetings. Many auditors are amazed and also
frustrated at the number of meetings they are attending now despite being confined at homes. Skype,
Zoom and alike technology solutions have made it possible. These options are great to limited in-
person meetings and logistics challenge.
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7. The Disadvantages
There are certainly some disadvantages to consider too. The important thing to consider is the audit
objectives, available technology and the type of audit evidence that needs to be gathered to
determine if a remote audit is suitable in the circumstances and aligned to the scope of the audit.
instance, an audit of welding process of a steel fabricator may not be suitable to be completed
remotely.
Remote audits should not be used as a cost-saving measure. They should only be considered if the
audit objectives can be met, beyond any doubt.
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8. System and networks require ongoing testing for security, connectivity and other capabilities. If
network connections are not reliable, it can interrupt interviews and meetings and may take time to
resolve such connectivity issues. Such issues can also limit the access to database for fetching
objective evidence for review.
Direct interaction with the auditee is lost during remote audit. Sometimes the body language can give
clear indications of something which is not right or is as it seems. Avoiding eye contact, adjusting seat,
constantly restless are some of the indications can be observed more clearly during in-person meeting
and not via phone or video.
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9. Remote audit is gaining traction and it is a positive thing. Clear and well planned audit planning and
communication are crucial to ensure the seamless process flow. While I do not envision that the
industry will be 100 percent virtual, there is a scope for at least one third of audit activity to be
completed remotely. With ISO 19011:2018 – Guidelines for Auditing Management Systems including
new specifications for conducting remote audits, it is obvious that we are moving towards virtual
auditing approach. However, the benefits of having personal connection and interaction with auditees
cannot be neglected.
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