Automated substantive testing for auditors.
Audit evidence is the foundation of any audit opinion, that's why Valid8 starts with evidence. Using various documents and API connections, auditors can rapidly assemble a data base of financial evidence (independently sourced and 3rd party verified) that can be used to automate various low-level audit verification procedures.
Unlike accounting transaction analytics and anomaly detection solutions, Valid8 Audit creates associations between evidence and accounting transactions. Banking transactions are matched to cash journal transactions which are then traced out to the originating entry. The result is a verification disposition on every single client transaction. Auditors can move beyond low level verification work and focus on higher value, more strategic issues.
Valid8's patent-pending matching and tracing algorithms move auditors away from sampling, toward full population testing resulting in a dramatic improvement in evidence coverage and audit quality.
Collecting audit evidence is burdensome and full of latency making hitting deadlines tough. Auditors must often decide how much evidence is enough and make a tradeoff between coverage and risk.
Valid8 Audit rapidly collects banking activity directly from banking institution APIs or from PDF statements creating a database of financial evidence. Auditors use the data to automate verification procedures.
Sampling risk was introduced into audit procedures as a recognition that there is no way for humans to review evidence for every single accounting transaction a client makes.
Rather than using manual procedures and humans to confirm, vouch, and verify accounting transactions, Valid8 uses patent-pending matching and tracing algorithms that provide full population susbstantive testing for any account on the financial statement.
Getting client customers to reply to A/R confirmations in a timely fashion is nearly impossible leaving auditors with manual alternative procedures like tracing invoices and payments out to bank statements.
Valid8 automates this procedure by generating a Subsequent Collections workpaper that shows for every outstanding invoice and payment whether or not a corresponding banking transaction has occurred since the cut-off date.
Time spend verifying revenue can get out of hand quickly. Complexities like multiple types of revenue, 3rd party point of sale systems, deferred revenue procedures, and related sub-ledger activity require more time and resources.
Valid8 revenue verification workpapers identify what percentage of revenue can be traced back to the cash journal to help identify complexities in the revenue cycle. In addition, for any revenue that can be traced to the cash journal, substantive testing using banking activity is performed on that full population.
Valid8 works on some of the highest profile fraud cases in the world. Data security is our top priority. Valid8 is a SOC2 certified solution.