The Value of a Desktop Audit
It seems counter-intuitive to audit from afar.
We talk about the benefit of getting under the skin of the business you’re reviewing, the importance of looking beyond the ‘numbers’ and using instinct mixed with more than a dash of investigative skills to really understand the company and therefore the potential risk. Often, the subjective elements lead an auditor to dig deeper to find what is really going on.
However, the situation we’re living in currently, with the pandemic taking its toll on businesses across the country, dictates that we must adapt to ensure that risk remains protected whilst doing our best to ensure as many businesses are able to access the funding they require.
With many businesses entering uncharted waters, with reduced sales and cash flow being squeezed, there will inevitably be an increase in client failure which could, in turn, lead to a rise in fraudulent activity out of desperation. This enhanced level of risk means that more vigilance is required.
The benefits of remote auditing
Desktop audits can assist with ensuring clients know that risk management is continuing, despite the restrictions on physical audit visits. This can reduce the likelihood that a client will be tempted to defraud its funder.
The ability to perform checks on PoDs, POs and remotely access accounting systems means that valuable insight can be gained and form part of a wider toolkit for the lender. The addition of video calls can allow the auditor to get a good feel for the situation.
Debt verification work can also be conducted remotely, whether for a pre-lend survey, a routine audit or to take a closer look at a client’s sales ledger.
An external viewpoint, whether it be via a physical audit or a remote review, provides the ability to deliver additional insight as the auditor can assess the business with a ‘fresh pair of eyes’, identifying any anomalies that might not be as easy to spot if involved in the day-to-day running of the client.
Whilst remote audits can’t replace a physical site visit, they are a useful tool to more effectively manage risk during these difficult times.
To find out more about how we can assist, please contact us on 0800 2761310, or request a call back today.