Audit analytics in practice
Risks identified in auditing financial statements
Deloitte’s analyses used for audit purposes provided new insights for improving the company’s controlling and quality of monthly financial statements.
In the audit of the annual financial statements of a major car distributor on the Czech market, Deloitte auditors informed the company’s owners about the risks related to margin maximisation. Using the Data Analytics tools, the statutory audit was performed efficiently and in a high quality manner with a significant additional benefit, resulting to certain internal steps taken by the company as follow up. Deloitte’s analyses used for audit purposes provided new insights for improving the company’s controlling and quality of monthly reporting. The company also reviewed its internal controls in sales in order to eliminate the risks of margin erosion, which were highlighted by Deloitte.
“In general, retail is very sensitive in terms of margin. Retail companies also generate big data and, from our experience, utilising Data Analytics in financial audit is beneficial for both sides,” said Ladislav Šauer, Audit Analytics Director at Deloitte. The representative of the company’s owners told us that the owners were positively surprised by the extent of the value of the outputs and impulses for the company’s business activities that the audit of the annual financial statements performed by Deloitte brought about.