A Digital Transformation Journey from Manual Audit Processes to an Internationally Adaptable Solution
In auditing, where regulatory compliance is paramount and the consequences of inaccuracies can be significant, there is a critical demand for efficient, tailored software solutions.
Rietmann and Partner, a Swiss nationwide auditor and tax consultant established in 1911, faced the challenge of simplifying their internal workflow and enhancing the audit process. They weren’t satisfied with the online audit tools available, so they teamed up with Modeso to create a tailored solution.
This case study will explore the step-by-step implementation of the custom audit solution we delivered for Rietmann and Partner, the technologies involved, and the tangible results achieved by the company through their collaboration with Modeso.
“modeso’s ownership is a significant factor in our project’s success. They take charge of every detail and consistently exceed expectations with their dedication. A top-notch software agency!”
Michael Schwander, Partner @Dr. Rietmann & Partner AG
The complexities of auditing required a custom solution
At the core of auditing is the idea of securing an endorsement from an audit firm, confirming that a company complies with the established standards. The auditors, such as Rietmann and Partner, not only have to ensure their clients’ compliance but also bear the legal responsibility if an audit is deemed incorrect during subsequent regulatory checks. Because of the lack of a standardized, guided approach during the audit process, auditing firms have to manually navigate through the required steps, exposing their firms to potential risks.
Recognizing these challenges, Rietmann and Partner was prompted to seek a solution that would streamline the auditing procedures, ultimately driving internal efficiency and ensuring compliance with regulatory standards.
They explored the existing market offerings. Yet, every off-the-shelf solution they came across had its limitations, leaving the firm dissatisfied with the choices at hand. This prompted Rietmann and Partner to make a strategic decision – they chose to build a custom software solution tailored to their specific needs and turned to Modeso to implement the project.
Our goal was to create a rule-based system to offer auditors a clear guide, streamlining decision-making in audits and accelerating the entire process. But to develop this solution, we had to thoroughly understand the intricacies of auditing procedures.
The software development framework we followed
Our engagement with Rietmann and Partner kicked off through a series of workshops designed to gain insights into their audit processes. Recognizing that the key to our collaboration’s success lay in a deep understanding of their work specifics, we prioritized effective project planning.
Here is a short overview of the main stages of our collaboration:
1. Alignment Workshop
Our team delved into the nuances of Rietmann and Partner’s workflow, identifying pain points, and figuring out the ideal solution.
2. Conceptualization
The decision was to build a dynamic and configurable system that can adapt to different legal and regulatory requirements and audit standards. The identified main steps – financial statement, planning, execution, and finalization – formed the backbone of the system. Our architecture had to be highly configurable so that an administrator could easily set up tasks, rules, and other parameters, and customize the system based on the specifics of each audit.
3. Technical documentation
The conceptualization phase translated into detailed documentation, outlining the system’s architecture, functionalities, and configurations, serving as a blueprint for development.
4. Agile development process
With a clear concept and documentation in place, we adopted an Agile development approach. This iterative methodology allowed for continuous feedback, refinement, and adaptation to evolving requirements throughout the development lifecycle.
5. Iterative refinement
Regular feedback loops ensured that the evolving software aligned with Rietmann and Partner’s expectations and effectively addressed their audit process challenges.
How we established a collaborative workflow with Rietmann and Partner
The success of the project hinged on the seamless collaboration between our software engineers and Rietmann and Partner’s functional experts working together to bring the auditing solution to life. Here is what we did to establish a collaborative workflow:
Parties involved
RIETMANN AND PARTNER
A functional expert group, comprising auditors (the end-users of the system), played a pivotal role as project stakeholders.
MODESO
On the software development side, our team included nine developers, a project manager, a QA expert, and a UI/UX designer. The project manager, as the orchestrator of priorities, ensured that our team could adapt quickly in response to stakeholder feedback and changing project needs.
Collaborative motions
Bi-weekly workshops
Our collaboration unfolded through bi-weekly workshops where both functional experts and software specialists gathered to share insights, discuss progress, and refine the evolving solution.
Regular feedback loops
We regularly showed Rietmann and Partner our progress on the project, keeping them informed about any challenges and incorporating improvements based on their feedback.
Continuous testing
The functional expert group on the client’s side tested the evolving system and offered real-world insights and feedback at every stage of project development to guide our development efforts.
Streamlined audit workflow: how the solution works
The implemented solution provides a seamless audit workflow that simplifies the process for auditors and also ensures compliance with regulatory standards.
The core functionality of the system revolves around a set of rules governing the audit workflow. First, users can upload balance sheets in the form of Excel files. The system uses these inputs to generate financial statements automatically. Manual input of rules, managed by admin users, further customizes the workflow to align with the unique requirements of Rietmann and Partner.
We established access controls to safeguard data privacy and integrity. Different user roles, such as auditors and lead auditors, can be allocated specific permissions for visibility and editing privileges, ensuring users engage solely with data relevant to their responsibilities.
Here’s an overview of how the audit solution works:
1. Data upload
Users upload balance sheets and income statements to initiate the audit process. The software offers an autofill feature for companies undergoing repeat audits. It automatically populates data from previous audits, saving time on repetitive tasks like mapping and configuration.
2. Automated rule-based analysis
The system employs predefined rules to flag potential issues, such as imbalances in bank accounts or irregular financial distributions. General rules guide the analysis, identifying specific financial line items that require closer scrutiny during the audit.
3. Task assignment and execution
The system generates tasks for execution based on the identified issues. Auditors execute tasks, relying on the system to guide them through the necessary actions.
4. Finalization and report generation
In the finalization step, the lead auditor reviews the audit findings and can generate a comprehensive audit report. The report, once finalized, is a trustworthy document that can be submitted to authorities.
Technology stack
We created a dynamic, rule-driven auditing solution that not only met the unique needs of Rietmann and Partner but also offered a scalable and adaptable framework for future enhancements and customer-specific configurations. Here is an overview of the technology stack we used to build it:
Cloud and on-premise deployment
The auditing solution was designed to be versatile, accommodating both on-premise deployment and cloud accessibility. Each customer, representing a distinct company, has a dedicated system. This approach enabled a tailored, customer-specific experience without compromising the security of sensitive financial information.
Multi-tenant architecture
The architecture follows a multi-tenant model, where each customer has its own instance of the system, preventing data overlap and ensuring a secure and isolated environment for each company. This approach also facilitates a modular setup, allowing for easier customization of rules, workflows, and access controls on a per-customer basis.
Solving technology challenges throughout development
CHALLENGE
Complex auditing requirements
The dynamic and configurable nature of the solution required a deep understanding of auditing specifics, making it challenging for developers to translate auditor’s requirements into a functional system.
SOLUTION
Interactive testing environment
By setting up an interactive testing space where stakeholders could input test data, we gave our team a hands-on understanding of auditing specifics. Facilitated by the auditors sharing valuable insights into auditing processes and configuration details, the testing environment fostered a common language between our development team and the end-users.
CHALLENGE
Slow performance
The decision to use MongoDB as a database, driven by the goal of achieving maximum flexibility with data structures, introduced a challenge related to query performance. MongoDB excels in flexibility but can face performance challenges when dealing with complex queries.
SOLUTION
Fine-tuning MongoDB implementation
We fine-tuned the way queries were structured and executed, and introduced caching mechanisms reducing the need for repeated database queries to enhance the performance of the system, especially when dealing with queries spanning multiple entities.
CHALLENGE
Migrating data from Excel
The Excel file, serving as a repository for income statements and balance sheets, posed hurdles during the requirement analysis phase. Understanding and migrating data, especially the crucial income statements and balance sheets, required careful consideration and planning.
SOLUTION
Data mapping and compatibility
We collaborated with Rietmann and Partner to understand the structure of their existing system, mapped the data elements between the Excel file and the new auditing solution, and ensured compatibility between the two systems to facilitate a smooth transition without compromising data integrity.
Result: A highly customizable and internationally adaptable solution
The implemented audit solution has not only met the initial challenge of simplifying Rietmann and Partner’s internal workflow but has also positioned the firm for global scalability.
Streamlined internal audit workflow
The solution has become an integral part of Rietmann and Partner’s operations. A rule-driven approach streamlines the entire audit process, from planning and execution to finalization, and simplifies decision-making, instilling confidence in the reliability of the audit findings.
Customization and adaptability
The system’s highly customizable nature has transformed the auditing workflow at Rietmann and Partner. The ability to configure the solution based on specific accounting standards and industry requirements provides unparalleled flexibility.
Global scalability
The extendable architecture of the system ensures that Rietmann and Partner can effortlessly expand their operations globally. Whether it’s Germany or the USA, the system allows for seamless adaptation through new configurations tailored to regional auditing standards.
