Financial Services IT Audit

Asset management in financial industry

How Successful ITAM Helps Financial Companies Stand Up to an Audit

Among the most heavily regulated industries, the financial services sector is faced with internal and external audits regularly. Banking audits may review an array of areas, including everything from fraud risk and system and process accuracy to financial services. With so much ground to cover, it’s imperative for financial companies to be prepared for auditors to comb through internal workflow and databases.

Successful IT asset management (ITAM) solutions can help banks and financial institutions hold their own against the scrutiny of a thorough audit. With the right software and automations in place, firms can prepare for any assessment and vet their own ITAM processes before an external party does.

Audits and the Financial Sector: A Costly, Time-Consuming Endeavor

There are several audit types banking and financial companies are faced with that feature an exhaustive list of requirements they must adhere to. Compliance, in general, can be an expensive ordeal, demanding steady internal reviews, process and system updates, and a substantial amount of preparation. This translates into a considerable amount of time and money spent avoiding fines and compliance setbacks. The banking sector, in particular, is saddled with steep audit-related expenses. Considering all the resources allocated to compliance efforts, a failed audit is a squandered investment.

When providing requisite materials to auditors, many financial organizations run into issues with outdated, inefficient asset tracking processes that prevent them from presenting a comprehensive audit trail.

The Benefits of ITAM and Audit Automation for Financial Companies

A streamlined solution can do away with slow-moving auditing processes and create the all-inclusive documentation needed to satisfy independent assessments. Audit automation powered by real-time asset visibility benefits financial companies in myriad ways, including:

  • Increased efficiency: Manual, time-consuming activities can be automated and executed by digital platforms. This frees employees up to focus on high-value activities critical to their organization’s core competencies.
  • Consistent, accurate information: Collective all the necessary information for the audit process is labor-intensive. An automated solution allows companies to integrate data from disparate sources, provide a complete overview of all assets, and ensure no data falls through the cracks.
  • Satisfy compliance and regulatory needs: When the audit process is mapped out as a workflow and automated via a centralized platform, all pertinent information is captured automatically. This not only helps ensure compliance but grants organizations the ability to respond to changing regulatory landscape.
  • Refined business insight: Improved audit trails allow businesses to make decisions regarding aspects of their workflow and expenditures, giving them valuable insight into what their hardware and software budget should be.

File Your Financial Firm’s Taxes in Confidence

For the financial industry, audits are a fact of life. However, the more preparation organizations within this sector take, the better positioned they will be when it comes to meeting auditors’ criteria. ITAM tools can be used to show appropriate assets are in place to keep a company’s data secure, security measures are functioning as they should, and promote stability and performance of pertinent data.

When you turn to Asset Vue, you’re partnering with asset management software professionals that help you visualize asset lifecycles, including everything from mobile devices to office chairs. For more information about why Asset Vue’s IT asset management tools are instrumental for managing data, software compliance, hardware assets, and your financial service’s IT audit, contact us today.

financial asset management

Case Study: Financial Services Firm Improves Accuracy of IT Audit to Save on Annual Use Taxes

Audits are important to IT asset management, but they are time consuming, tedious and unfortunately not reliable. Even regular audits, or incremental audits, waste resources and are only valuable until a move or add is not immediately logged.

asset tracking software assetvue

The Challenge

An international financial services firm was struggling with accurately accounting their IT assets’ current locations and status. The firm knew their asset information was not up to date and needed a solution that was as dynamic as their business. They also discovered that assets in various offices across the country that had been counted as in service were in fact offline and had been decommissioned. The firm’s financial team felt that the firm was paying much too much in both annual use taxes in some states on assets not currently located in those states, and because the firm was not able to claim depreciation on decommissioned assets. They chose Asset Vue as a reliable way to prove these through more accurate audits with real time information on where their assets are worldwide.

The Plan

Within weeks of the initial consult, the Asset Vue Services team stood up the application, performed an audit and tagged all assets within weeks to implement a sustainable solution. The on-site team worked closely with the financial services firm’s IT managers to replicate the installation across all sites nationally, and, for the first time, get an accurate audit of every IT asset in use. This immediately freed up hundreds of person hours previously spent on regular, incremental audits.

The new system from Asset Vue was quickly put through its paces through automating more of the receiving process and, through an integration with HP Asset Manager and Svc Now, automate more of the lifecycle process for critical assets.

Asset Tracking Software
asset management tools

The Results

As the client had suspected, Asset Vue Inventory was able to create an accurate audit of assets that were no longer located in a state with an annual use tax. The system was also able to notify managers in advance when warranties or the set useful life of assets was coming up, accelerate and automate more of the decommissioning process, and record depreciation on these assets. Claiming that depreciation saved the firm more money. In all, the cost avoidance for this firm as a result of implementing the Asset Vue system is in the millions, and the money saved exceeded the cost of the system in its first year deployed.

Not every Asset Vue client has so dramatic a tax situation as this one, but every IT department and data center can benefit from more accurately understanding the current status, lifecycle stage, and location of every critical asset in their inventory. The first step for any financial services firm – or any IT operation – is an accurate audit of assets. For a discussion how Asset Vue can benefit your company, feel free to schedule a call.

Here’s a list of few more strategies you can consider:

Improvement StrategyDescription
Regular Auditing
Implement regular and systematic IT audits to ensure continuous monitoring and compliance.
Invest in audit automation tools to streamline data collection and analysis, reducing human errors.
Comprehensive Scope
Expand the scope of IT audits to cover all critical systems, data, and security measures.
Data Validation
Cross-verify data sources for accuracy, authenticity, and completeness before conducting audits.
Skilled Auditors
Employ experienced and certified IT auditors with a deep understanding of financial IT systems.
Real-time Monitoring
Utilize real-time monitoring and alerting systems to identify and address issues promptly.
Risk Assessment
Perform risk assessments to prioritize audit efforts based on potential vulnerabilities and impacts.
Maintain detailed documentation of audit processes, findings, remediation, and compliance measures.
Continuous Training
Provide ongoing training for IT staff and auditors to stay updated with industry best practices.
External Review
Consider third-party audits to provide an independent and unbiased evaluation of IT controls.