How do I ensure my automated regulatory filings with regulatory reporting software are compliant with audit requirements?

To ensure automated regulatory filings made through regulatory reporting software are audit-compliant, focus on controls, traceability, validation, and retention. Auditors usually want to see that each filing is accurate, authorized, reproducible, and fully evidenced.

Key practices

1. Maintain a complete audit trail

Your software should log:

• who prepared, reviewed, and approved each filing
• timestamped changes to data, formulas, mappings, and templates
• source systems used and data extraction times
• any manual overrides or exceptions
• final submission details, acknowledgments, and rejection/error responses

2. Use controlled data inputs

Make sure filings are generated from:

• validated source systems
• documented data transformation logic
• version-controlled reports, templates, and mapping rules

Avoid ad hoc spreadsheets or uncontrolled manual edits unless they’re tightly governed and logged.

3. Implement maker-checker approvals

Use segregation of duties:

• Preparer creates the filing
• Reviewer/approver validates it
• Submitter sends it to the regulator

This is important for both internal controls and audit evidence.

4. Reconcile source data to submitted data

Before submission, perform and retain:

• reconciliations between general ledger / source records and regulatory outputs
• checks for completeness, duplicates, and threshold exceptions
• variance analysis and sign-off on material differences

5. Version control everything

Keep controlled versions of:

• filing templates
• business rules
• mapping tables
• calculation logic
• regulatory schemas and submission formats

Auditors often ask: “What logic produced this filing on that date?” You should be able to answer exactly.

6. Validate against regulatory requirements

Automate checks for:

• field formatting
• required-field completeness
• cross-field consistency
• statutory thresholds and business rules
• schema validation for electronic submissions

Document the validation rules and keep evidence of passed checks.

7. Preserve evidence of submission and acceptance

Retain:

• submission receipts
• regulator acknowledgments
• rejection reports
• resubmission history
• any correspondence about filing corrections

8. Control access and permissions

Ensure only authorized users can:

• modify filing logic
• approve filings
• submit reports
• override validations

Use role-based access controls and review them periodically.

9. Retain records per policy and regulation

Keep:

• source data snapshots
• output reports
• approval records
• system logs
• correspondence and attachments

Retention periods should meet both regulatory and internal policy requirements.

10. Test the process regularly

Perform:

• periodic control testing
• user acceptance testing for rule changes
• mock submissions or dry runs
• disaster recovery and continuity testing

This proves the process is reliable and repeatable.

What auditors typically look for

Auditors usually want evidence of:

• a documented filing process
• clear ownership and approvals
• reconciliation between source and filed data
• system-generated logs and retention
• change management for rules and templates
• exception handling and remediation

Practical checklist

Before relying on automation, verify that your software can:

• produce a full audit log
• enforce approvals
• validate data automatically
• lock down templates/rules
• retain submission evidence
• support reproducible re-runs of historic filings

If it can’t, add compensating controls outside the system.

If you want, I can also give you:

1. a regulatory filing audit checklist,
2. a control framework template, or
3. an evidence package outline for auditors.