Automated Audit®

During a traditional audit, auditors run into the same pain point: they struggle to identify and extract accurate data because the information and schedules requested are not readily available directly from the database. The data usually originates from multiple sources, the level of detail needed is not found in the data extracts, and significant time is spent by high-dollar resources performing manual tasks to prepare for the audit. Our new software, Automated Audit, allows users to run industry standard audit procedures, proactively identify areas of non-compliance, and more.

The software automates most common procedures that an auditor would use to substantiate the financials. These automated procedures, called Data Facets™, work from a complete accounting representation, not just isolated transactions, while maintaining all links (drill-down and roll-up) to related balances and the original underlying data (i.e. accounts receivable invoices stay linked to underlying shipping information for cut-off testing). Users do not have to load multiple large extraction files.  Automated Audit drills down from the trial balance, manages the workflow among different team members and reviewers, allows splitting of the audit scope by categories, ledgers, legal entities, or even regions to different members of the audit team, and generates the audit working papers for each Data Facet.

Automated Audit® is an out-of-the-box software product that allows the finance team or internal audit team to drill into transaction-level detail to find exceptions or audit concerns to help you prepare for your formal audit process.

Audit Workflow Management

Completeness/Existence Testing Support

Features and Benefits

Example Scenarios

Audit Workflow Management

  • Ability to assign and unassign focus areas or divisions to each auditor and ability to split audit scope by procedures
  • Ability to include notes, attachments, to each procedure, edit the notes and share with the audit manager
  • Dashboards and workflows to quickly view overall audit progress
  • Ability to view what each auditor is working on, and the number of exceptions encountered
  • Built-in approval hierarchy
  • Ability to document audit conclusions and disposition of audit exceptions identified

Support for “Completeness Testing”

  •  Start with a transaction and trace/audit all the way up to general ledger:
  • Example: A global corporation transferring inventory internally from one operating unity/organization to another
  • Trace OUT and IN transactions from the inventory shipping and receiving perspective
  • Tie those transactions with general ledger entries in associated ledgers
  • Tie those general ledger entries with general ledger balances under appropriate accounts and accounting periods

Support for “Existence Testing”

  • Start with general ledger balance for an account and accounting period and like the balance entry with underlying transactions and related full accounting representation:
    • Example: Vouching for a receivables balance account for an accounting period
  • Vouch to all the customer invoices associated with the receivables balance
  • Vouch customer invoices to shipped product to confirm the validity of those invoices
  • Trace any credit memos that were applied on those customer invoices and check for validity
  • Reconcile with customer receivables aging report
  • Tie all settled invoices to related payments

Perform cut-off at year end: This data facet tests investments to help the auditor make sure that no unrealized gains or losses are recognized for any securities except for trading securities.

Tests on accrued income: The software will carry out various procedures where the income earned but not received is checked by obtaining schedules showing balance, obtaining opening balance, making a selection of accruals and examining supporting documents or examining subsequent receipts of income accrued.

Testing amortization: This data facet investigates unusual variations in current period and prior period ending balances, determining if amortization time is reasonable, comparing actual amounts to budgeted amounts, and reconciling amortization expenses to the general ledger.

Prepare for External Audits: From automating the preparation of schedules that external auditors ask for each year (e.g. subsequent cash disbursements, accounts receivable balance and transactions, general journal entries, inventory roll-forwards/roll-backs, and many more) to automating a final review on key audit areas prior to the external auditors check – Automated Audit makes the annual audit easier and less time consuming and most importantly, resulting in less findings. 

Features and Benefits

1 intellegent rules

Intelligent rules-based auditing and assurance tool

2 dashboards

Dashboards and workflows to quickly view overall audit progress

3 Auditors and Teams

Used by internal auditors and finance teams at the database level

4 100 reduced risk

Up to 100% transaction and balance coverage and reduced risk

5 sampling

Employ sampling or materiality-based selections of items, balances, or transactions to fit the organization

6 complete rep

Audit the complete accounting representation

7 group

Ability to group individual balancing segments for any procedure

8 instant report

Instant availability of findings reports and dashboards

9 pattern match

Automatic pattern matching ability

10 hierarchy

Built-in approval hierarchy and review controls

11 disposition

Auto-disposition and Mass Disposition features for most procedures

12 easy interface

Easy-to-use interface for financial users (not the IT team)

Product Screens

Product Demo