Five Steps to Comprehensive Statement Auditing

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comprehensive statement audit

Five Steps to Comprehensive Statement Auditing

Comprehensive Statement Auditing- Defining and Understanding the Deployment 

What’s the best way to define a comprehensive statement audit (CSA) process? Well, if you take the good old traditional statement audits and improve their capacity with new technologies and fully automatized systems, you’ll end up using the CSA. This was a direct and simple definition. The more complex one will include the process of AR accounting records reviewing with the main goal of recovering dollars through the identification of purchasing anomalies, data, and processes.

 

The Power of Comprehensive Statement auditing

The modern statement auditing has no other option than to become fully comprehensive and automatized? Nowadays, any provider of corporate auditing services has to deal with the gigantic supply systems, which keep getting bigger and more complex. This means that the volume of data and business subjects are simply overwhelming for traditional statement auditing, which relies entirely on manual approach and processing. In other words, with the traditional auditing, you can expect to reach no more than 5-20% of suppliers and purchasing data involved. On the other side, the comprehensive statement auditing aims and deliver high. We’re talking about the impressive percentage of 95 and more, which strongly improves your chances of recovering dollars back to your company.

Here are a couple of proven steps, which guarantee that the implementation process of comprehensive statement auditing will be successful and efficient:

1st Step – Begin with the quality and reliable supplier data

You need to make sure that you “feed” the system with relevant and up-to-date purchasing data. This may seem like a completely understandable thing; we simply don’t have to emphasize. However, the bitter truth is that the quality of supplier-related data quickly deteriorates and that maintaining proper communication with numerous suppliers isn’t an easy task.

 

2nd Step – Ensures the quality of supplier compliance through the multiple communication channels

Supplier compliance is a demanding and ongoing process, which means that you have to ensure uninterrupted communication with suppliers. Only a fully automatized and pro-active multi-channel structure can provide adequate communication quality essential for the efficient comprehensive auditing process.

 

3rd Step – Apply technology to validate and improve suppliers’ statements

Having in mind that the high volume of statements, outreaches, and all kinds of supporting documents, which threatens to collapse the entire system, you need to embrace new technology in order to successfully and timely process all relevant data.

 

4th Step – Proactive identification of purchasing anomalies

This is the main task for any statement auditing, which aims to be efficient in recovering your company’s dollars. That’s why it has to be proactive all the time.

 

5th Step – Comprehensive Statement Auditing isn’t a project, but rather an ongoing process

Comprehensive statement auditing is all about identifying and resolving purchasing anomalies your company experiences over a certain period of time. It’s an ongoing process, which asks for you to be involved all the time if you want to recover all of your money.

 

 

JoeFlynn

jflynn10@gmail.com

Joe Flynn is a Silicon Valley Entrepreneur who created Lavante, Inc. Lavante was started with the vision using Machine Learning, Natural Language Processing and advanced Data Extraction techniques to transform the traditionally manual-based Account Payable Recovery industry. Lavante Was acquired by PRGX Inc. in November 2017. Joe is currently working on a new venture using Artificial Intelligence and Machine learning to transform trade partner communications across the entire supply chain.

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