Burdensome and time-consuming data requests to provide manual audit support for revenue transaction testing was a drain on the finance teams’ resources. A manufacturing company was open to an alternative approach to revenue testing, one that would not only become less burdensome, but also provide the auditor with a deeper understanding of the business’s revenue.
SERVICES PROVIDED BDOADVANTAGE
In prior years, for each transaction, the client needed to gather and individually submit five documents: the journal entry, invoice, bill of lading, cash receipt and sales order. This resulted in a manual submission of 1,000 documents and represented a significant drain on the finance team’s resources.
Instead of the traditional audit sampling testing approach, BDO deployed its proprietary Sales Match Analytic tool which enabled 100% coverage of sales transactions.
With the help of the Sales Match Analytic tool, BDO effectively and efficiently analyzed and matched the relationship between all relevant documents.
The reason I love the Sales Match Analytic so much is it can greatly reduce the effort our clients spend on revenue testing, and it allows us to come away with a more meaningful understanding of the business.
Learn more about how BDO is driving audit innovation.
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