Advances in Connected Worker Technology
The effectiveness of these virtual site visits can not only reframe the traditional approach of inperson visits , but they can also unlock a number of new efficiencies . They provide stakeholders the ability to see more locations in a shorter amount of time . This could mean visiting multiple sites in one day or visiting smaller ones that may not have been visited due to time constraints . They eliminate the need for extensive and costly travel required to visit international sites for instance . They facilitate the inclusion of more parties in the visit itself ( e . g ., senior executives , etc .). Finally , they can serve as precursors to in-person visits if the virtual one uncovers the need for physical presence on-site .
Inventory Observations
Physical observation of inventories is a generally accepted auditing procedure , requiring an independent party to travel to a site and conduct a count of inventory items . The observations made are reflected on financial statements as part of standard reporting procedures . Recently , companies have developed inventory controls and methodologies that include statistical sampling , which are effective in determining reliable quantities and do not require a physical count of all inventory items . 9 However , it is still common for the auditor to be present on-site .
As the ongoing pandemic continues to challenge in-person interactions , connected worker technology can equip independent auditors with intelligent HMDs that allow for faster and more cost-effective physical inventory observations . From a process standpoint , independent auditors usually deploy team members to various sites to conduct the counts .
While travel can be minimized by optimizing the deployment schedule , the end-to-end process remains time-consuming and costly . Team members must first go through a site walkthrough or orientation , which takes time for not only the auditor , but also for the client stakeholders . The count can sometimes occur over several days . Once the observation is completed , the independent auditor needs to consolidate results for incorporation into financial statements , or reconcile any observed discrepancies .
In a technology-enabled future state the auditor could ship an approved connected HMD to the client with a user-friendly onboarding guide . Once onboarded , the client can conduct the inventory count while the auditor connects remotely via video and audio conferencing , guiding the client through the procedure . Although the same can be achieved with a smartphone or tablet , inventory observations are often conducted in remote and sometimes hazardous environments , requiring the user to maintain a clear line of sight and be hands-free . Finally , applications can also be developed and integrated with HMDs such that image and object recognition software allows for automated counts as the client walks through the site and points the camera to the items .
- 60 - November 2020