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Robotic Process Automation Can Enhance Auditing Practices
In: Automation

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Robotic Process Automation can help employers improve accuracy in their payroll and HR processing and auditing, two payroll professionals said May 17 in a presentation at the 41st Payroll Congress in Denver, Colorado.

RPA is a computer process aimed at replicating an employee’s behavior, with the goal of reducing unnecessary repetitive tasks. Introducing RPA to payroll and HR auditing can help employers shorten cycle times and provide more accurate result, leading to greater analytical insights, said Lisa Poole, vice president of payroll tax for Truist Bank.

Workplace RPA can come in the form of bots, digital workers, or artificial intelligence. Nudge bots, a form of RPA, are a simple way to implement automation, as they just remind employees of what hasn’t been done, she said.

The goal is to replace repetitive tasks, Poole said.

Employers interested in pursuing automation should start by conducting a self-audit, asking themselves, “Can this process be automated in the short term? Can it be automated in the longer term? Or maybe it shouldn’t be automated at all” says Poole. You also want to consider the functions of your department, she said, as some tasks might not be worth automating.

Employers should also give a strong consideration to the kind of documentation they seek to automate, as Poole highlighted some of the dangers associated with sensitive employee data and automated systems. “You want to make sure anything you put into [the automated system] is safe,” she stressed, highlighting some the common risks associated with digital transactions.

A self-audit process can be particularly beneficial for payroll departments, Poole said. “Before you start automation, you’re going to want to audit the payroll process,” emphasizing the important role payroll departments play in ensuring accurate and representative employee data. She also stressed the importance of communicating with employees throughout the transition to automation. “Coaching is crucial,” she said, highlighting the benefits of clear communication. “You don’t want employees to feel left out.”

RPA can also enhance the process of external auditing, particularly when parties seek to agree on data sampling, a foundational tool for any successful audit. Having accurate representative data, thoroughly evaluated with the use of RPA, can save employers and auditors time and money, said Stephanie Salavejus, vice president and COO of Pensoft, “AI can help you mitigate and find risks and errors in the data.” Compliance tests are a great way to see if automation can assist you, she said, as AI can quickly spot compliance risks.

Developing technology in automation was also highlighted, with Salavejus touting the recent introduction of blockchain into the data sampling process, which may help increase auditing accuracy by providing more accurately representative samples. This is a key element to auditing, she said, as errors in data sampling can lead to issues that may create risks for employers, such as inaccurate audit reports.

Poole and Salavejus encouraged payroll professionals to focus on their personal stories when convincing management of the need for implementing RPA, “You must have a compelling story. Automation is either a financial benefit or a risk-management item,” Poole said, highlighting the expense mitigation and production benefits that come because of the RPA implementation.

Leadership will benefit greatly from automation, as it’ll enhance transparency, helping cut costs, providing greater analytical insights, and helping mitigate risks, said Poole and Salavejus. “You’re going to see an increase in these discussions,” Poole said, “because they’re a win for the organization and they’re a win for employees.”

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