Audit Precision through Automation – an audit technology case study

Prior to starting his firm, William Jenczyk was a principal in the real estate group at DiCicco, Gulman & Company LLP. That firm, located in Woburn, MA, had 120-employees and was a full-service provider to their clients. Fast-forward to today, William Jenczyk, CPAs, LLC is a small firm that provides a full range of tax and accounting services with a focus on excellent client service and precision. Combined, Jenczyk has more than 40 years of experience in audit, tax, planning, and consulting.

A New Perspective on Audits

In addition to having a strong background in real estate, Jenczyk also led the initiative at DiCicco, Gulman & Company to implement Wolters Kluwer’s Integrated Audit Approach, audit technology designed for CPAs. That effort was so successful that he quickly wanted to do the same automation for his own firm.

“The Integrated Audit Approach is a complete package. The audit technology in it that guides you through the audit process is CCH® ProSystem fx® Knowledge Coach. The solution draws clear connections between steps and risk. It is a complete audit technology tool that really lends itself to helping you produce the highest quality audit possible. It does that by addressing risks that are there and minimizing my internal risk of something going unnoticed or unseen.”

Engagement Keeps the Firm Organized

Jenczyk uses CCH® ProSystem fx® Engagement as a centralized hub for managing every type of client engagement, including tax and financial statement work. They use Engagement to import raw client data, prepare adjustments, create financial statements, and export completed data to tax returns. Additionally, it also functions as the central location for tracking, reporting, review, sign-off, and archiving of all types of engagements.

Jenczyk says, ”I came from an environment that was 98 percent paperless. I wanted to get back to as close to that as I could. The Integrated Audit Approach, with Engagement and Knowledge Coach, lets me do that.”

For business clients, Engagement is used extensively for trial balance, write up and financial statements. It also manages tax work for individual clients. Every client has a binder in Engagement, and the staff stores client documents in the binders. With little artificial intelligence to remedy, managing trial balances is a challenge all firms face. Because the trial balance is an integral part of the business tax return preparation process, not streamlining this can certainly be time consuming and jeopardize your reputation. Check out how The Engagement Effect can remedy paint points like that for your firm.

Knowledge Coach Increases Quality and Efficiency

Today, CCH ProSystem fx Knowledge Coach is a critical component of the firm’s quality control process. Jenczyk says, “The basic approach of Knowledge Coach is really good. The integration is what puts the sparkle on it. If I make a change, that change automatically flows over to other applicable forms, checklists, and programs.”

Between his prior and current firms, Jenczyk has used Knowledge Coach extensively and has been impressed with how the solution has developed and matured.

“The Knowledge-Based Audit Methodology, which is the foundation on which the entire approach rests, is much more efficient. I like the fact that you are starting from scratch and building the audit approach as needed. The old way is starting with a complete program and having to pare it down. I found that Knowledge Coach and the KBA Methodology results in more targeted, higher quality work.”

Jenczyk finds the latest disclosure checklist to be very useful and appreciates the ability to mark an item ‘non-applicable’ to have the whole section disappear. In the near future, he plans to develop new client templates that will help the staff more quickly generate new client binders with the needed programs and forms.

Building a Competitive Advantage

Jenczyk’s goal in implementing the audit technology of the Integrated Audit Approach and other CCH® ProSystem fx® Suite solutions is to position his firm for maximum profitability and efficiency in the future.

Furthermore, other firms like EOS Accountants LLP, have found even more efficiencies through additional solutions in the Integrated Audit Approach. One is TeamMate Analytics which performs data analytics work that, traditionally, is impossible. Another is CCH Audit Accelerator which gains as much as 40-48 hours per engagement, depending on the size of the audit. Muhammad Hussain, Senior Audit Manager, EOS Accountants LLP says this about these audit techonology soultions:

“When it comes to audit preparation, with regard to receiving client data, it has always been difficult and time consuming to gather it all and get it into a format ready for testing. Adding the CCH Audit Accelerator and TeamMate Analytics solutions to our audit workflow has changed our world, though. What use to take as much as 180 hours in years past now takes as little as 1-hour. That is an amazing amount of time saved. With it, our auditors can now deliver deeper insights to the client, thus enhancing the client’s experience. We are looking forward to moving toward “continuous auditing” throughout the entire year.”

So, are you ready to learn more about how to improve your workflows even further? Then start now by reading our latest eBook: Audit Analytics Technology. It highlights how two firms changed their work processes to thrive in the audit space, not just survive.

AUTHOR

Wendy Cable

Product Marketing Manager at Wolters Kluwer Tax & Accounting

All stories by: Wendy Cable