In an audit, processes are analyzed with respect to requirements and guidelines. Specially trained auditors assess the extent to which these requirements are fulfilled during the course of the audit and afterwards. Audits should be conducted more than once so that the correctness of the processes can be ensured even in the long term.
In the financial auditing segment, audits generally focus on receivables financing and the processes of the seller of the receivable. In general, receivables-based financing is possible only when based on a true service, rendered in full and accepted. In an audit, compliance with the agreed contractual framework and the accounting processes for financing within a business relationship are ascertained.
Minimize risks through audits
The growing complexity of services, the increased requirements of the supervisory authorities as well as the high standards of quality within the financial services industry call for expertise at all levels. However, it is the falling prices for personnel-intensive services in turn that make it difficult to provide services profitably.
As a non-bank financial partner, we offer banks and other receivables buyers, e.g. factoring institutions, our financial expertise for outsourcing financial audits.
During the course of an audit, we examine the legal validity of the receivables as well as compliance with the agreed processes and guidelines. We act as an independent expert on site at your client’s location as dictated by you in each individual case (e.g. annually).
Non-bank financial auditing with Arvato Financial Solutions
The maturity structure and the cash flows of the receivables, among other things, are subject to the audit. In addition, the management of trade credit insurance matters is of interest. Are these obligations fulfilled or is there a need to make adjustments in terms of execution?
The viability of a receivable can also be influenced by dilution – on account of this, the audit usually also includes a review of the credit notes issued for advertising cost subsidies, bonuses, etc. Not least, the management of reminders contributes to the assessment. Following an intensive review, we prepare an audit report structurally aligned to your company and amended to include your individual audit criteria. In doing so, we provide you with audit results which you can use as a basis for preparing and making your future credit decisions.
Of course, any changes to the framework conditions will call for an immediate audit of the receivables, which we will also implement. Consider that a financial audit is not only useful during a business relationship, but also at the beginning or even prior to commencing business operations.