Staying ahead of the digital revolution requires navigating new ways of adding value to your clients. Typically, this is achieved by embracing data analytics software, providing you with advanced and powerful features that will improve quality and create efficiencies within audit, compliance, and risk.
Preliminary analytics form the foundations that an entire audit is built from.
Exploring data and visualisations allows for a better understanding of your client, highlighting unusual trends and relationships and easily uncovering the areas the audit approach should focus on.
Preliminary analytics are a key opportunity to also plan for value.
What areas of interest or concern can be identified through exploring the data and discussing visualisations with your client? These might not have audit implications but could provide value to the client if explored or reported on alongside the audit process.
Preliminary analytics becoming the foundations
Preliminary analytics can form the basis of a valuable audit engagement. An effective approach leads to:
- Better understanding of the entity and the financial results
- A highly tailored Prepared-by-Client list
- Detailed scoping of accounts and balances where a risk of material misstatement exists
- Granular assessment of the assertions relevant to each risk of material misstatement
- Robust consideration of where the risk of fraud is present
- Planning where audit procedures can be designed, or extended, to provide additional value
The result is a timely, well-planned, holistic audit approach. Valuable audit procedures are performed to address the specific areas where a material misstatement could exist – and reduced from areas which pose minimal or no risk.
How does Inflo fit into all this?
Inflo’s data analytics technology not only equips you with intelligence about your client, it also allows you to identify notable transactions and compare them to industry benchmarks. This means you can show clients how they stack up against the best-in-class. Additionally, one of Inflo’s core strengths is its Data Ingestion capabilities, designed to ingest data from 100% of accounting firm systems.
Once you’ve ingested the data, you can start executing data analytics using a variety of Inflo’s data analytics modules. Inflo Flux and Inflo Explore provide a way to navigate and interrogate information, visualise characteristics, and identify relationships amongst 100% of transactions. It also facilitates the direct inquiry with the client.
Inflo Select is a natural extension from inquiry with your client and provides the ability to request underlying support for general ledger and subledger details by executing sampling in a consistent and routine approach.
Inflo Detect focuses on journal entry testing, looking for characteristics in a non-traditional way with Inflo Revenue Cascade looking at revenue transactions and using process mining to identify the riskiest revenue populations.
Let’s have a look at Inflo’s modular structure more closely…
Inflo Flux is the initial analytical module that uses the trial balance data from a client system to show how a business is performing. It gives you the ability to analytically compare the client’s financial data and highlight unusual movements, set expectations on the data, and examine trends from year to year.
Inflo Explore interrogates characteristics, attributes, and transactions at an individual transaction level detail (if needed), enhancing your preliminary analysis, scoping and risk assessment with a variety of visuals to help you see trends and explore underlying detail.
Inflo Select is end-to-end automation of the audit sampling and test documentation process and drives consistency in testing transactions. The sampling types can be tailored by each individual firm to ensure that Inflo Select easily creates a compliant sample selection.
Inflo Detect drives the journal entry testing process and instantly identifies transactions with unusual characteristics using inbuilt complex automated tests.
Begin your digital transformation journey
Preliminary Analytics will transform your audit services from the very beginning. It sets the tone for the engagement, showing your client a more collaborative, data-led approach and how technology is increasing the value of your services to them.
If you are looking to gain competitive advantage and attract clients by adopting new technologies which allow your firm to provide clients with better service and greater value, look no further than our downloadable Digital Audit Guide.
This guide is a must-have for any firm expecting to remain competitive and relevant in the accounting profession. We’ll walk you through a new way of thinking about the value of the audit and a new way of conducting the audit, putting you on a path to true digital transformation.