The audit confirmation process plays a crucial role in ensuring accurate financial reporting, but it can be a cumbersome and costly task for many firms. Too often, firms rely on CPAs (high paid resources) to complete and follow up on confirmations, draining their most precious resource (CPA's time). Additionally we find some firms make their client complete the confirmation template, causing delays and bottlenecks in their testing as well as creating a less than ideal experience for clients. This ultimately leads, to a cost center rather than a profit center. In this blog post, we'll explore the Audit Sight Playbook on how to transform the confirmation process from a cost center to a profit center, all while maintaining quality and increasing profitability.
Your audit confirmations are costing you time and money because CPAs are doing the job. Too often, firms delegate this task to staff CPAs. This results in days of pushing paper and sending emails instead of auditing management's judgments and assumptions. By having a center of excellence run by Non CPAs or outsourced resources, firms can get the right people doing the job.
Audit Sight, is a software solution that simplifies the confirmation process. It allows you to build your firm's confirmation templates based on your methodology, and templates can easily be edited or adjusted by your team. Using two excel import templates, all confirmations can be automatically drafted, sent, completed, and followed up on, with results documented in your work papers. The software is so easy Non CPAs can operate the solution. CPA's get completed work papers to review eliminating hours and days of elapsed time and time in the budget.
Firms often bill back their clients from cash and debit confirmations, but fail to bill back other confirmations. Why is this? It's because this is all internal costs and not external costs. But here's an opportunity to make confirmations a profit center. By leveraging Audit Sight you firm can accurately capture this cost and bill it back to your clients.
Increased Efficiency and Quality Control - The right templates used, the right procedures performed, nothing is ever forgotten. By using Audit Sight, your firm's confirmations process will be GAAS compliant
In conclusion, the audit confirmation process can be a significant cost center for many firms. But with the right approach, it can be transformed into a profit center, all while maintaining quality and increasing efficiency. By using specialized technology solutions like Audit Sight, you can automate the confirmation process, free up resources, and bill clients for all confirmations. In doing so, you'll not only boost net income but also improve the overall experience for clients and staff alike.
