Pick one of the 3 automated monitoring systems and explain its use and capabilties.
1) APA format
3) Body Citations
4) No Plagiarism
5) 350 words
6) 2 responses (each 150 words)
The selected automation system is the automated transaction monitored system. This is a system that financial transactions, account statements, and other financial data are monitored digital instead of having the manual systems where experts take part in the process. This kind of monitoring ensures there are new capabilities that are not possible with the use of auditors or experts. It is important in ensuring that the accounting systems and financial records of organizations meet the required standards by the regulators. It enhances the accuracy and speed of the monitoring for different financials of an organization. Organizations that use the automated transaction monitoring systems are meant to benefit from better accuracy and can match their competitors in terms of meeting the regulatory requirements. This system also avoids errors that can be very costly for organizations (Elghaish, Abrishami, & Hosseini, 2020). Errors such as manipulation of the accounting systems by some experts for personal or malicious gain can be prevented by the usage of such systems. The organizations can thus avoid issues that have to do with falsified financial statements or documents that may result in fines by regulatory agencies.
Apart from the accuracy of the reports, the automated systems also enable a fester or quicker process for the handling of the monitoring. The automation can lead to less time and accuracy for the monitoring. In that regard, the firm may save cost by not hiring additional accountants and auditors. That means it is also contributing to the reduction in the cost of production or operations. The end result is increased earnings for the organization. It is thus important that different organizations should consider this kind of automation for better performance of their firms
Random audits and departmental compliance: Randomization are required in rigorous policy evaluation often and both federal and state governments have been using randomizations for a variety of purpose for approximately couple of centuries. In particular context of random government audits, transparency of process is crucial, especially when non-compliance can have reputational effects. Randomization for policy evaluation are now so common that the U.S General services administration has an office of Evaluation sciences that has conducted over 70 randomized policy experiments.
Governments also regularly conduct audits, some random and some not. For example, audits of financial records by the U. S. Securities and Exchange Commission, random audits of lobbying disclosures, audits of federal taxpayers to assess compliance with the Internal Revenue code, and randomized review of quality control. These audits include regular citizens, firms, agencies, policies, lobbyists and even elected officials.
Compliance automations is beneficial to integrate into organizations that process sensitive information, such as hospitals or banks, or that must adhere to a set of rules and standards when protecting customer data. Laws and regulation requirements update continuously, making the automation of compliance processes more productive, simplified and accurate for internal auditors and senior management. Benefits of compliance automation are below:
Implementation is more time and cost effective compared to manual controls.
Makes the implantation of compliance policies uniform across computing platforms such as physical servers, private clouds, public clouds and containers.
Continuously verifies compliance requirements, manages third-party risks and catches potential weaknesses.
Minimizes the number of inadequate or inaccurate reporting mistakes.
Reduces likelihood of encountering compliance fines and breaches.
Risk management decisions can be made based on real-time data.
Compliance status and audit information can be accesses and checked within a single dashboard.