With many enterprises still using Excel to track the data produced by internal control, audit, and risk management activities, a cloud-based solution to perform the task has a chance to be a game changer.
Enter AuditBoard, a Los Angeles-based startup that enables CFOs to create an out-of-the-box system of record for a company’s internal audit, compliance, and risk teams. (A screenshot from one of AuditBoard’s products appears below.)
On Wednesday, the company received $40 million in funding in a Series B round, led by stalwart venture capital firm Battery Ventures, which has invested in more than 400 companies.
“With more CFOs now turning to dedicated, cloud-based software tools for various tasks, from ERP to tax compliance to procurement, we see a big opportunity for AuditBoard to continue to grow,” said Michael Brown, a general partner with Battery Ventures who is joining AuditBoard’s board of directors.
“We have invested before in similar companies that sell technology to CFOs — ranging from Avalara and Intacct to Outlooksoft and Bonfire … ,” Brown pointed out.
In its marketing materials, AuditBoard says it offers “a full suite of easy-to-use audit management and compliance solutions for SOX [Sarbanes-Oxley], controls management, operational audits, ERM, and workflow management.”
The company, founded by two former auditors, was initially called SOXHUB, but changed its name in November 2017 to reflect an “evolution from a purpose-built solution for internal controls and SOX to a fully-integrated GRC platform that also includes operational audits, compliance, and enterprise risk management,” according to the company.
AuditBoard’s current client base includes TripAdvisor, Zynga, TrueCar, Spirit Airlines, Amkor Technology, and KinderCare.
An internal auditor’s review of the SOXHUB product on Capterra says the software’s dashboard “provides a quick and easy way to show what controls are effective and what controls are ineffective.” The reviewer also says that “navigating through everything is a breeze as you can sort by controls, types, control owners, who tested the controls, who reviewed the controls, etc.”
Other reviewers praise a “workstream” function that reminds control owners of due dates for documents that have to be sent to external auditors.