RCA TRAINING

Root Cause Analysis training by Sologic provides the tools, skills, and knowledge necessary to solve complex problems in any sector, within any discipline, and of any scale.
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SOFTWARE

Sologic’s Causelink has the right software product for you and your organization. Single users may choose to install the software locally or utilize the cloud.  Our flagship Enterprise-scale software is delivered On Premise or as SaaS in the cloud.
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The proposed International Standard on Quality Management (ISQM1) paper sets out a structure of wide-ranging proposals that, when implemented, will encourage substantial changes in quality management related to audits, reviews of financial statements and other assurance or related engagements. 
 
At the core of ISQM1-ED is a genuinely proactive, risk-based approach to quality management.  One that proposes high quality Root Cause Analysis (RCA) as the preferred method for firms to ensure that audit deficiencies are fully understood, addressed and explained.  As global RCA specialists within audit and accountancy, we have prepared four short articles expanding upon the objectives and benefits of RCA, as laid out within the proposed ISQM1 framework.
 
In this short article, the 3rd of 4 on Root Cause Analysis (RCA), we will be looking at how firms can best manage and benefit from their RCA reporting.
 
As highlighted throughout ISQM1, the aim of introducing high quality Root Cause Analysis into the understanding of audit deficiencies is largely twofold.  Firstly, by applying a structured and analytical approach to major deficiencies firms will be in a far better position to fully understand, explain and correct the causes of their existing failures.  And in addition, the iterative nature of strong Root Cause Analysis means that firms will also be in a far better position to address systemic hidden risk and apply an ever-greater number of more effective preventative solutions. 
 
RCA not only gives audit firms a standardised analytical framework to address problems and apply solutions, an effective RCA process also provides a concise and accurate way to communicate valuable information. A Sologic RCA report provides an organisation with a reporting template to store and share crucial information in accurate, clear and digestible pieces.  This allows key staff and stakeholders to access corporate memory and stay ahead of an information curve that is often the difference between success and failure.
 
Great organisations, regardless of their sector, recognise that their reporting system is the critical communication vehicle between groups of diverse stakeholders. Therefore, it is essential that any system of reporting must be simple to understand, easy to access and straight-forward to share. Without this, an organisation will limit their institutional learning and thus fragment their corporate memory.  Not fully understanding or learning from past mistakes is a sure-fire way to leave risk unaddressed.  
 
Unfortunately though, many organisations regularly fall short in terms of reporting their deficiencies.  Whilst a good many produce lightweight, incomplete reports, many more slip into the trap of assuming that a report is only effective if it holds every conceivable piece of information available.  The result of this ‘kitchen-sink’ approach is the creation of huge, lumbering, indigestible reports read by few and understood by fewer.   In this scenario institutional learning is limited, and opportunities to make improvements and guard against future failure are lost forever. This may well sound familiar to you.
 
Effective reporting is very different.  A high-quality RCA report will document an incident clearly, provide the key evidence and describe all of the client and organisational impacts. It will include an easy to review visual analysis and will concisely document any proposed solutions.
 
Effective RCA reports, as described in ISQM1 provide a strong case for change, they are streamlined, timely and engaging. If they fail to explain the key aspects of a problem clearly, nor highlight what the organisation should to do about it, the report will have failed.  Therefore the challenge for audit firms is to get the key outcomes recognised and embedded into the policies, procedures and training guidelines that really matter to their sector – and to do this efficiently.
 
Firms that wish to adhere to ISQM1’s requirements for a transparent and comprehensive means of dealing with audit deficiencies, demonstrating sound RCA practices, should strongly consider using the Sologic reporting method and firms that exceed a threshold of 300 staff should adopt a dedicated RCA reporting software product.   And as firms in the audit and accountancy sector are dealing with ever greater complexity, across multiple territories, and within shortened time frames, understanding complex events and applying effective solutions has become increasingly important.  Sologic’s Causelink Enterprise software enables teams across territories to collaborate with ease, understand problems, identify root causes, generate evidence-based solutions and share the lessons learned with ease.
 

RCA TRAINING

Root Cause Analysis training by Sologic provides the tools, skills, and knowledge necessary to solve complex problems in any sector, within any discipline, and of any scale.
Learn More
 

SOFTWARE

Sologic’s Causelink has the right software product for you and your organization. Single users may choose to install the software locally or utilize the cloud.  Our flagship Enterprise-scale software is delivered On Premise or as SaaS in the cloud.
Learn More