HLB International - Case Study​​​​​​​: Audit management tool collaboration

Dynamic Audit Solution (DAS) enhances guidance for auditors

Withum, HLB USA, is one of the largest advisory, tax and audit firms in the HLB global community, is a forward-thinking firm that prioritises leveraging technology to empower its staff and clients to thrive in today's complex business landscape. The firm collaborates with clients to establish scalable, secure, and collaborative environments that enhance employee empowerment, workflow optimisation, customer experience, operational efficiency, and innovation acceleration.

Recognising the transformative impact of technology, particularly the cloud, AI, and automation, emphasises the importance of embracing digital transformation to remain competitive.

For the past seven years, Withum, HLB USA, has been collaborating with the AICPA and CPA.com to assist in developing the profession’s first audit engagement management tool that has been built by the profession for the profession. The Dynamic Audit Solution (DAS), as it is known, is a totally transformative audit tool for the profession. The foundation upon which it has been built was developed by Caseware and the methodology used to guide the auditor is new and developed by auditors involved in the project from large firms.

Unlike most of the current audit solutions in the marketplace, what firms like best about this solution is that they can continue to use best of breed audit tools that have been used by them in the past as a result of its open Application Programming Interface (API) design.

Our firm, Withum, HLB USA, has led this charge with our HLB Global Technology Advisory Services Leader, Jim Bourke, at the helm of that group. Bourke comments, “Making change in the audit process is no easy task for a firm our size. With the current focus on data and AI we needed a new solution. Frustrated with all of the legacy audit solutions on the market, Withum, HLB USA, along with over 30 other firms, went to the AICPA and asked for their help in creating a transformative, new approach to auditing in today’s environment. The AICPA listened and delivered a state-of-the-art tool. Starting with release in North America, the profession will begin to realise the powerful role that data plays in every step of the audit."

The DAS will continue to integrate cutting-edge technologies like RPA, Machine Learning, and AI. Importantly, it's designed to be adaptable to future technologies not yet even envisioned.

This collaborative effort has produced a tool which will dramatically enhance the efficiency, quality and client value of financial statement audits through a risk-focused, data driven approach.

Jim Bourke

HLB Global Technology Advisory Services Leader

Technical Innovation

Audit firms around the world are performing quality audits and are making great strides in utilising technologies and tools to continuously adapt audits. But there's a tremendous opportunity to go even further, particularly when it comes to the financial statement audit methodology, which has remained largely unchanged for many decades.

Firms recognise the importance of technology in auditing but find custom-developed solutions costly. In response, the Dynamic Audit Solution (DAS) emerged, a collaborative effort between AICPA, CPA.com, Caseware International, and many large firms like Withum, HLB USA, reimagining the audit process. DAS, developed by and for the profession, offers firms a chance to digitally transform their audit practices. It's an all-in-one workflow tool, replacing linear processes with a data-driven approach supported by integrated analytics. This ensures auditors focus on crucial areas, enhancing both efficiency and efficacy. DAS features AICPA's methodology, a guided approach, and end-to-end functionality, streamlining the audit process and improving risk assessment throughout.

Today, DAS is part of OnPoint, a comprehensive cloud-based suite of applications built on the Caseware Cloud Platform that bring together embedded methodology, engagement management, automated financial statements, data analytics and client collaboration in a single package. Firm adoption of OnPoint, which also includes OnPoint EBP, OnPoint PCR and OnPoint Audit, has been steadily progressing with more than 200 firms now using one or more applications.

Withum, HLB USA, is continuing to move full steam ahead with its transition of legacy audit software to the DAS and the entire OnPoint suite. 

Added value for clients and increased efficiency

With the guided experience provided by DAS and its enhanced methodology, auditors are significantly improving their skills, enabling them to deliver valuable insights both to their engagements and to clients.

Key benefits and features include:

  • Enhanced efficiency – DAS integrates processes and methodologies, eliminating the need for numerous, disparate audit tools. This enables a holistic audit approach, facilitating a focused audit plan and improved collaboration through a single cloud-based platform.
  • ​​​​​​​Greater client & auditor value – Real-time data and integrated analytics support auditors in identifying, evaluating and responding to relevant risks throughout every stage of the audit. This allows for a deeper assessment at the risk level, enabling DAS to dynamically provide suggestions to auditors on how to respond to identified risks as the audit engagement progresses, helping to inform auditor judgment in real-time.
  • Attracting and developing top talent – DAS offers auditors a modern, technology-driven tool and enables immediate staff upskilling by helping them understand the why and what of their actions within the audit process.

Impact and Value- how, what, and why…

DAS makes the audit process much more engaging for staff by eliminating the mundane data entry tasks and enabling them to focus on using data to support meaningful risk assessments and deliver deeper insights to their clients.

It offers auditors an intuitive, user-friendly interface that incorporates features and capabilities commonly found in other commercially available technology tools. Its guided, logic-based approach ensures consistent understanding across engagements, enabling auditors to transfer accumulated methodology knowledge seamlessly from client to client. Consequently, early adopters of DAS have observed a deepening of auditors' understanding of the entire audit process with increased exposure to the tool. This exposure empowers audit staff, including those in the early stages of their careers, to develop foundational skills essential for conducting high-quality audit engagements.

While DAS exposure complements firm training and onboarding, it enhances audit professionals' comprehension of the entire audit process, emphasising the "how, what, and why" of their actions and their impact on the audit. This promotes greater efficiency by providing initial autonomy and facilitating team collaboration when additional input is required. Moreover, DAS brings benefits to other members of the engagement team, allowing seniors, managers, and others to focus their on-the-job training on aspects of the audit that demand human insight and judgment, rather than on mastering the mechanics of the audit file. 

Supporting Effective Adoption

Transitioning to a transformative solution like DAS marks a significant milestone in a firm's audit transformation journey, demanding robust change management and leadership support for successful adoption.

To get started, several steps are crucial. These include assessing current business processes and workflows, identifying skilful team members to champion migration and change management, and transitioning to a single taxonomy to align with DAS requirements. These proactive measures ensure firms are well-equipped for a smooth transition to DAS. Withum, HLB USA, CPA.com and the AICPA have developed a host of resources to help with this transition.