After you have linked your Client’s financial institution to Audit Sight, it’s time to sit back and let Audit Sight do the work in generating the Deposit Verification work paper.
Typically when verifying the cash balances, an auditor would need to send a cash confirmation letter to the client’s bank. This process may take upwards of several weeks and involve multiple back and forth conversations if there is a discrepancy or misunderstanding. With Audit Sight, we can use our view only connection to the bank to verify the balance in a matter of minutes.
In this article, we will go over how you can generate an equivalent Deposit Verification work paper in under a minute, and understand what is left for you, the auditor, to complete.
Step 1: Navigate to the Deposit Verification page
From the left sidebar, select Engagements and navigate to the engagement for which you are completing the Deposit Verification. Select Start to begin the process.
Step 2: Select bank accounts to verify
Depending on the scope of your engagement, your Client may have multiple bank accounts to verify. Select the date and each account you would wish to verify and click Verify Deposits.
Note: If you have recently integrated your Client’s bank accounts, it may take some time for the accounts to appear. You will receive an email letting you know once the account has been connected. If we have not completed the sync of the data or your client has not connected their account you will see the following message.
When using our direct bank connection to verify a balance, some banks will report pending transactions in the response if the test is run in the first few business days from the verification date. We have built internal checks on our end to identify if an account is likely to have pending transactions. If you are running the module and receive a “Syncing” status for an account, Audit Sight is waiting to receive confirmation that the pending transactions have cleared.
Once the transactions have been cleared the status will be changed to Verified and the work paper can be generated.
Step 3: Generating a workpaper
Once the balance has been verified with the financial institution, you will be able to click Generate Work Paper to automatically create a Deposit Verification work paper and Deposit Certificate. Click the Generate Work Paper button.
Once the workpaper has been generated you will receive an email with a link to download the workpaper. The workpaper will be available on the Work Papers tab inside of the engagement. To download a workpaper click on the download icon on the far right.
Understanding the work paper and Deposit Certificate
If you would like to receive an example of a completed workpaper with all relevant annotations email firstname.lastname@example.org.