Simply put: Opportunity. Many firms are performing quality audits and are making great strides in utilizing technologies and tools to continuously adapt audits. But there's a tremendous opportunity to go even further, particularly when it comes to the methodology, which has remained largely unchanged for many decades. Historically, firms followed the SALY (same as last year) approach which means they would look at last year's file, and then look at this year's data, and try to figure out if anything has changed. Today, technologies are enabling the analysis and storage of large quantities of data in the cloud, enabling firms to truly leverage data analytics to drive auditor actions and steps throughout the process. The end result is not only a more efficient audit (as auditors are spending time on the areas that matter) but also a higher quality audit as auditors are able to leverage the data to deliver deeper, more valuable insights to clients.

Many firms have been investing heavily in the adoption of new technology-enabled approaches to the audit. However, the level of investment required to custom-develop solutions can be cost-prohibitive. Leaders from many of the top 100 U.S. firms expressed a need for a solution to help firms better leverage technology in the audit space. This feedback was the impetus for OnPoint DAS (the Dynamic Audit Solution) - a collaboration between the AICPA, CPA.com and Caseware International, in partnership with leading audit practitioners, to re-imagine the entire audit process from the ground up.

Through this unique partnership, DAS was developed by the profession for the profession and offers CPA firms an unprecedented opportunity to digitally transform their audit practice and client services. DAS is a transformative audit solution that supports CPA firms in delivering deeper insights to clients by enhancing the efficiency and effectiveness of the audit. By automating time-consuming and repetitive tasks associated with traditional audits, DAS can help auditors to work more efficiently, freeing up time for higher-value work. This not only enhances work-life balance but also reduces burnout, leading to improved talent recruitment and staff retention rates.

Some of the key features of DAS include:

1. Transformative AICPA methodology
   Guided methodology is built into the application. The imported client data and information about the client documented by the auditor is used to help auditors identify risks and the proper response at the appropriate time.
2. End-to-end, all-in-one solution
   DAS is a complete end-to-end audit workflow tool, eliminating the need for separate applications and tools for each aspect of the audit process. This simplifies the audit process by providing auditors with a single platform to work from, which can improve collaboration among the audit team and enhance the consistency and quality of the audit process. Having a fully integrated solution also allows for real-time data and analytics to be used in the audit process, which provides auditors with insights into client data that may have been missed through traditional audit methods or use of disparate point solutions.
3. Improved risk assessment
   DAS has built-in, integrated analytics to enable auditors to identify and respond to relevant risks through every stage of the audit from beginning to end – starting with Understanding the Entity and its Environment through Risk Assessment and Response to Concluding. By using a tailored-in approach, DAS helps auditors identify all risks applicable to their client and eliminates unnecessary procedures.
4. Built-in Analytics
   Analytics are embedded throughout the DAS workflow which provide suggestions to auditors on how to respond to identified risks as the audit engagement progresses. Data analytics continually analyze and identify needs to modify suggested procedures as steps in the audit are completed helping to inform auditor judgment in real-time.

When thinking about audit transformation, it’s helpful to differentiate between the two parts of a transformative audit solution - technology and methodology. The OnPoint Suite is 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 into a single package. Developed in partnership between the AICPA, CPA.com and leading practitioners, the suite is designed for firms to support the transformation of their audit and assurance engagements to enable greater efficiency, improved quality, and greater client value through data-driven methodology & guided workflows, real-time collaboration, and robust data analytics. The following applications are part of the OnPoint Suite:

• Dynamic Audit Solution (DAS): DAS is designed to enable greater efficiency, improved quality and enhanced client value through transformative AICPA methodology and guided workflows, real-time collaboration and robust data analytics. See question #2 for more details.
• OnPoint Audit: An end-to-end audit solution built with assistance from a top US firm in line with auditing standards (GAAS) that is powered by automation, analytics and real-time collaboration modules to enable efficient, high-quality audits.
• OnPoint PCR: Enables consistency of procedures and adherence to professional standards, reduces likelihood of over-working PCR engagements, and facilitates improved leverage by enabling confident delegation of work to staff with guardrails to prevent non-compliance.
• OnPoint EBP: Improves the audit process of employee benefit plans (including 401(k), 403(b), defined benefit, and health and welfare benefit plans) through guided methodology that facilitates completeness and consistency of procedures, built-in diagnostics that direct auditor attention to non-optimal answers requiring further review, and comprehensive standardized testing & sampling templates.

Key pain points for auditors include the need to utilize disparate systems in an audit, which requires a lot of manual work and increases the risk of errors; the need to manually sync files or wait for files to be checked in and out; and the mundane, repetitive data entry required in the SALY approach to the audit.

What excites firms about DAS is that it is cloud-based and fully integrated, allowing multiple users to work in a file simultaneously and run an end-to-end audit in one platform. Data ingestion, automation, and re-use also eliminate mundane data entry tasks and allow the auditor to focus on delivering deeper insights to their clients.

Additionally, the guided methodology of DAS enables staff to upskill faster by showing them the “why” of audit steps instead of simply repeating last year’s procedures and filling out checklists.

We recognize the importance of industry content; DAS features robust industry content integrated into the platform. Please see below for a list of industries and current availability.

Migrating to a transformative solution like DAS is a very exciting and important step in a firm’s audit transformation journey. As such, it will require strong change management and support from leadership to successfully adopt and implement it. Depending on where your firm is in its transformation journey, it might be more appropriate to consider implementing one of the other solutions in the OnPoint Suite first, such as OnPoint PCR, OnPoint Audit or OnPoint EBP.

Once you’ve determined that DAS is the right solution for your firm, there are several steps you’ll need to take before beginning migration. These include:

1. Assess your business processes and workflows and perform a gap analysis between your current state and DAS. This will help determine the implementation plan that is right for your firm's size, infrastructure, culture and technology, as CPA.com offers multiple levels of hands-on implementation assistance based on your needs.
2. Evaluate the skillsets of your team members to identify champions who can help lead the migration and change management. Strong auditors who are excited about innovation and change make great champions and will serve as your DAS implementation team when you begin migration.
3. Transition to a single taxonomy - DAS follows a single taxonomy. Bringing your firm onto a single taxonomy before adopting DAS will make the transition to DAS smoother.

By performing these steps, firms will be better prepared to transition to DAS.

CPA.com, the AICPA and Caseware International have developed a breadth of live and self-study CPE learning to support firms on their audit transformation journey.

Live training is available for DAS and all applications within the OnPoint Suite, including OnPoint PCR, OnPoint EBP, and OnPoint Audit. Full team and train-the-trainer options are available.

Self-study modules are available on the CPA.com Customer Portal.

CPA.com also offers migration and implementation services, leveraging an effective 5-step framework to help firms achieve positive, successful outcomes. The Implementation Support service offers multiple options depending on your firm’s needs. Some firms have internal professionals equipped with the necessary expertise and skill sets to dedicate to this initiative, while others may not have the same resources and capabilities - which is a void CPA.com can fill.

For more information on available training and implementation services, email Training@hq.cpa.com

DAS offers a data-driven methodology compliant with the standards; however, the methodology within DAS is by no means the only acceptable methodology. As with any audit methodology and audit workflow tool, firms are responsible for following the methodology and employing the tool in a manner that is in accordance with professional standards and guidance. How a firm does so will impact the results of its peer review, including the report rating. Like other third-party methodology providers, DAS and OnPoint solutions will be evaluated by (an) independent, qualified third party(ies).

Visit cpa.com/das to learn more about DAS.

For pricing information, contact your Caseware account manager or fill out this form: https://www.caseware.com/request-demo/