If you work in the audit and accountancy profession and you’ve found this page you will already be aware that Root Cause Analysis has become the go-to problem solving methodology in your sector.
Firms, professional bodies, and regulators alike, are strongly encouraging practitioners to employ effective RCA as way to substantially improve audit quality. Sologic are by far and away the leading providers of Root Cause Analysis to this sector.
So, what exactly is an effective RCA and what does it deliver in terms of improved audit quality? At its core, RCA is a process for identifying the causes of problems or events in order to prevent them from recurring. It is based on the idea that effective management requires more than putting out fires for problems that develop, but finding a way to prevent them. RCA can also be employed as a means of identifying best practice, supporting continual improvement and rewarding evidence based decision making.
The methodology assists audit professionals with:
- Identifying underlying causes of significant problems or successes
- Delivering solutions with immediate and lasting impact
- Helping establish best practice and greater efficiency
- Compliance with the expectations and guidelines of regulators
- Building a better reputation and experience for clients
- Instilling a deep-rooted positive problem solving culture in your firm
- Automated reports for improved transparency and compliance
- Creating a competitive edge for winning new business
Sologic are the global leader in providing Root Cause Analysis training, skills development and software to the Audit and Accountancy profession. Our evidence based method enables firms to discover the genuine systemic and non-systemic causes of failure and where to focus their process improvement efforts.
As the ICAEW states in their 2017 paper: Improving Audit Quality ‘RCA that is not sufficiently robust may not identify the real root causes for findings. If the wrong cause is identified, the wrong remedial action will be taken’.
If you want to encourage rigour, consistency and transparency, reduce bias and identify truly effective solutions Sologic’s Root Cause Analysis method will give your organisation the skills, tools and culture it needs.
By applying RCA, audit reports add greater insight that improve effectiveness and efficiency, business performance and overall governance.
Chartered Institute of Internal Auditors. June 2017