EFFICIENT AUDIT PROCESSES
Digital confirmation of balance leads to more efficient auditing processes
Within an annual audit, the confirmation of balance is an essential component for obtaining appropriate and meaningful audit evidence.
For the confirmation of balance process, a targeted communication between different participants is necessary. Besides the auditors, the company to be audited and other various business partners of the client are involved.
Auditors have an important control function in the confirmation of balance process
The auditing standard IDW PS 302 underlines the responsibility of the auditors in the digital confirmation of balance process:
Specification of the information to be collected
Selection of suitable third parties
Configuration of the confirmation requests
Dispatch of the inquiries and possible follow-up inquiries
The control by auditors must be ensured throughout all phases of the process: the specification of the data to be obtained, the dispatch of the inquiries and of course the final assessment.
Digital confirmation of balance enables process automation and saves resources
The current confirmation of balance process is very time and material intensive. Balance confirmations are requested by mail, are signed by hand and returned via mail (poastal delivery) to the audit firm. Auditors – who are usually working at the client’s office or work from home – must travel to their office location to pick up the letter.
Who does not know the problem? Depending on the sample size, dozens of letters must send out during an annual audit. After that, several weeks pass by until the client’s business partners respond to the inquiries. This delays the entire process.
With 5FSoftware and the digitalization of the confirmation of balance process, you get a higher level of efficiency, time savings and more sustainability due to less use of natural resources within your business processes.
Efficient and effective with the digital confirmation of balance by 5F
With the 5F collaboration platform in use you can digitize all phases of the confirmations of balance process. Requests for confirmation of balances are sent digitally to customers and suppliers of your client. The recipients can intuitively upload the corresponding documents to the 5F platform with a few clicks. This streamlines the entire process, accelerates the response time compared to conventional procedures and improves the ecological footprint of your company by reducing paper and CO2 emissions (due to postal delivery).
An essential quality feature of the 5F collaboration platform is the security of the data: In addition to DSGVO and GoBD conformity, 5F offers the possibility for audit-proof storage of your documents.
5F Collaboration Platform: Holistic approach instead of isolated solutions
The holistic approach of the 5F collaboration platform enables auditors to exchange information with their clients in a targeted and topic-related manner directly on the platform. Any required further information can be made available for selected users (internal and external) via the platform in a secure and timely way.
In combination with the additional module 5FSign it is possible to digitally sign every kind of documents on the platform. Our electronic signature solution meets the requirements of the eIDAS regulation. The electronic signature ensures further process streamlining and supports mobile working. Participants can sign digitally from anywhere they are. The process is protected and forgery-proof. The signed PDF can be sent to the client within a very short time. In this way, even the last “paper gap” in the audit process can be digitally closed.
Advantages of digital confirmation of balance
Time saving due to electronic transmission of documents
Secure and complete documentation of shipping and confirmation processes
Location-independent working due to digital availability of all examination documents
Resource-saving work between all process participants
Feel free to contact us. We are happy to help.
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