Audit Innovation - Case Study 2

Seeking Audit Innovation

Saving time and money with Sales Match Analytics

A manufacturing company was open to an alternative approach to revenue testing, one that would not only become less burdensome, but also provide greater insights into their business’s revenue.

Historically, 200 items were chosen for testing. For each item, the company needed to submit five documents: the journal entry, invoice, bill of lading, cash receipt and sales order. The client had to manually submit 1,000 documents for testing.

Client Challenges

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Since the existing audit process was not automated, BDO was limited to testing a small sample size of 200 sales transactions. In prior years, for each transaction, the client needed to find 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.

BDO's Solution

Instead of the traditional testing method, BDO deployed its Sales Match Analytics tool which enabled 100% coverage of sales transactions.

With the help of the Sales Match Analytics tool, BDO efficiently analyzed and matched the relationship between all documents. Subsequently, anomalies were noted for closer examination.

Company Benefits

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Overall, the client was able to place greater confidence in the resulting analysis while experiencing less disruption.

The client also received higher quality insights, informed by more comprehensive data analysis.

The client spent significantly less time submitting manual documents for testing.

The Sales Match Analytics tool allowed for 100% coverage of sales transactions, as opposed to detailed testing which only covered around 1%.