Benefits
The value of a thorough transaction-level analysis of a company’s historical relationship with suppliers extends far beyond the obvious financial benefits to the EBIT line from recovering financial leakage. Companies and their executives, now more than ever, need to know that internal controls are working and that when benchmarked against a range of other companies, their performance ranks respectably.
The benefits of Profectus’ Financial Transaction Analysis include:
Understanding your system and procedural effectiveness
Financial inflows and recoveries
Performance analysis reporting and Post Analysis Report
Expansion of Internal Audit reach
Understanding your system and procedural effectiveness
The final results of our Financial Transaction Analysis services provide you valuable information about the effectiveness of your systems and procedures. Exceptional findings will uncover ineffective procedural or system controls whereas normal findings provide a comparison with similar organisations and peace of mind.
Recommendations in the Post Analysis Report will assist you to rectify any procedural or system control problems to reduce future financial leakage and provide benchmark statistics against peer organisations and historical results.
Financial inflows and recoveries
On average we identify and recover between $65,000 and $150,000 for every $100 million of expenditure analysed and our initial audit covers three historical years. These recovery figures are average figures for large private and public companies, and government organisations after their internal audit functions have completed their investigations.
Performance analysis reporting and Post Analysis Report
As part of Profectus’ Financial Transaction Analysis services, comprehensive reporting is provided both during and at the completion of the project. The reporting provides clients’ with statistical reporting on performance covering areas such as:
• cash management
• methods of payment (e.g. cheque, electronic funds transfer, procurement card)
• supplier management
• procurement
• supply chain management.
Expansion of Internal Audit reach
Profectus’ Financial Transaction Analysis services complement your Internal Audit function. The standard Profectus Financial Transaction Analysis can be viewed as an additional review to complement your annual Internal Audit Programme. Because most of our services are conducted on a success-fee basis, this addition to your Internal Audit Programme is at least cash neutral and in most cases a cash flow positive initiative.
The value of our service to your risk management programme comes from the deep and exhaustive transaction testing of data sets that we conduct for specified periods. Profectus’ analyses do not need to set materiality thresholds due to the automated nature of many enquiry routines we utilise. Profectus can expand or modify our data enquiries to support specific information needs for Internal Audit or business unit managers with specific information requirements that a client’s IT systems cannot easily produce.
