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Spreadsheets. Scrambles. A stressful countdown to a critical deadline, like an upcoming meeting or report.
Traditionally, this scenario is what comes to mind when public sector leaders hear the phrase “audit-readiness.” Preparation is rife with manual processes, across departments and email chains. Data analysis entails in a range of disparate sources. And the end result is merely a snapshot in time, incomplete and quickly dated as a bellwether of risk.
Such a reactive, cyclical approach to audit readiness no longer works.
Here’s why, and how understaffed, budget-strapped audit teams can use technology to achieve continuous monitoring — and constant audit readiness.
Simply put, cyclical audit readiness lacks the visibility and efficiency to keep up with today’s environment of rising complexity, scrutiny, data and stakes.
Manual testing doesn’t yield the coverage today’s risk environment demands, both across time and across operations. Spreadsheet-based tracking with fragmented documentation lacks consistency and certainty, and it’s inefficient when time and staffing are at a premium.
Importantly, organizations can’t afford to wait until the next scheduled review to address underperforming controls or emerging red flags.
With more data and risk to watch and more watchful eyes expecting swift resolution to any issues, public sector leaders need more from their operations: specifically a more continuous, structured approach to controls, documentation and monitoring.
For federal audit and financial leaders, proactive, year-round audit readiness has become mandatory practice. The 2026 update to OMB Circular A-123 requires internal controls that are “continuous, embedded, and distributed throughout organization,” with an overall risk management approach that helps address risks proactively and may be preventative or encourage opportunity-taking when successful.
For state and local agencies, millions in service gaps or misdirected benefits can be lurking beneath the surface of annual reviews, with the cost of these anomalies swiftly adding up. Effective stewardship of public funds — and maintenance of public trust — depends on always-on oversight.
The same holds true for public universities and colleges overseeing research grants and student aid. At a moment’s notice, funders or oversight bodies can ask for a status update on how funds were controlled, where exceptions occurred and how issues were remediated, pressing leaders to proactively stay ahead of unusual patterns and recurring findings.
Diligent responded to these challenges with Diligent Audit Solutions, centralizing risks and controls across finance, operations, programs and IT with continuous monitoring built in.
The solution’s AI-powered features make it easy for teams to build out test procedures aligned with specific control descriptions, programs and procedures, while reusing different controls and risks.
Repeatable analytics enable 100% testing in high-risk areas like duplicate payments, ineligible beneficiaries and suspicious vendors. This means you can run full population tests instead of samples while continuously monitoring your systems, instead of manually grabbing evidence and reviewing it.
Automated workflows route exceptions to the right people at the right time, all while tracking status and progress. Automated reminders enable evidence requests to be sent out directly through the platform.
Throughout, the platform adapts to an organization’s workflows, whether you're part of state government, a local municipality or institution of higher education.
Finally, the real-time dashboards of Diligent Audit Solutions give leaders 24/7 visibility into control health, open issues, remediation status and fraud/waste/abuse trends, across departments and programs.
Externally, financial or compliance teams can send these metrics directly to leadership, for visibility into all of their hard work throughout the course of the year. This includes exporting out just a quick one-pager or summary.
Internally, they can track total progress versus planned activities as they execute a review or an audit. All issues are seamlessly tracked within the platform, along with all relevant entities, processes, and key contacts.
The solution is built by auditors who understand public sector requirements with audit trails on every data access and export, giving you the oversight and defensibility you need.
Master your team’s shift to continuous monitoring and always-on audit readiness. Schedule a demo of Diligent Audit Solutions today.
Stronger public sector controls start with Circular A-123
Recent updates to OMB Circular A-123 elevate the importance of internal controls within federal agencies, emphasizing a more proactive, risk-informed approach to managing fraud, waste, and abuse. This shift not only affects compliance but also presents a unique opportunity for agencies to enhance their control systems and risk governance through continuous controls monitoring (CCM). Discover how these changes can empower public sector financial managers to improve oversight and accountability while leveraging modern technology.
Continuous audit for public sector: Better visibility and accuracy start here
Discover how continuous audit transforms public sector oversight from periodic checks to real-time monitoring, enhancing visibility and risk management. Learn about the benefits of automation, analytics, and AI in creating an always-on audit environment that keeps organizations proactive and compliant. Elevate your audit practices and ensure accountability with Diligent's innovative solutions.
