By Dee Guitton, Southeast Asia Account Manager​​ – Confirmation

In an era where audit firms worldwide are rapidly embracing digitalisation, Singapore’s top audit firms, RSM and BDO, are among those leading the transformative wave. The two firms are setting industry benchmarks, exemplifying the transition towards more efficient, tech-driven business practices. These forward-thinking firms are leveraging Confirmation’s Accounts Receivables and Accounts Payables (AR/AP) product to further streamline their processes and enhance their audit capabilities.

Founded in 2000, Confirmation has long been synonymous with bank confirmations, its flagship product. However, the platform’s capabilities have extended beyond bank confirmations. AR/AP confirmations are a natural extension, and audit firms in Singapore have been quick to recognise the advantages.

Progressive Adoption in Singapore

Since 2021, a significant number of audit firms have embraced Confirmation for their AR/AP confirmations, with some adopting unlimited subscription packages to maximise functionality.

The benefits of this transition are evident:

1. Better Response Rates: Traditional confirmations typically yield a response rate of 5-10%. In contrast, Confirmation’s online AR/AP tool sees an improved average response rate of 50%.   The platform’s ease of use, automated reminders, and dedicated follow-up team facilitate responders and ensure auditors get higher response rates with minimal effort.
2. Swift Turnaround: Nearly 70% of responses are received within three business days, enabling auditors to focus their attention on the right responders or alternative procedures when necessary. This not only accelerates the confirmation process but also raises auditor productivity.
3. Consolidated tracking: With auditors already using Confirmation for bank confirmations, consolidating AR/AP confirmations on a single platform just makes sense. This integration simplifies the workflow, saving valuable time and resources.
4. Automated Audit Trail: Perhaps most crucially, the Confirmation platform automatically logs all activity, from request initiation to automated reminders. This detailed audit trail ensures firms have solid evidence of due diligence, which is useful when dealing with regulators or audits.

Unlocking the Potential for Audit Firms

From a larger perspective, streamlining the AR/AP confirmation process is more than just a time-saving endeavour. It’s a strategic move that allows auditors to dedicate more time to meaningful audit work and exercising professional scepticism. This is pivotal for attracting and retaining talent; especially in Singapore, where a severe shortage of skilled professionals in the accountancy sector necessitated government intervention in the form of a taskforce earlier this year, as announced by Deputy Prime Minister and Minister for Finance Lawrence Wong.

Quotes from the Leaders in Audit

BDO, renowned for its dedication to digitalisation, has embraced Confirmation’s AR/AP functionality:

“BDO Singapore has always focused on digitising our audit process, so transitioning all our account confirmations to Confirmation was an obvious choice. This shift has significantly boosted our teams’ efficiency, with all requests easily accessible online, streamlining tracking. The Confirmation team provided excellent support throughout the entire process.“

— Jacqueline Lew, Audit Partner

RSM, equally committed to digital transformation, shares their experience:

“RSM has been and is continuing to work tirelessly to digitise our entire audit process, and AR/AP was one of the parts we digitalised by moving to Confirmation. It is easy for our engagement teams to collaborate on a client, send, and track requests. We are delighted with the improved response rates.“

— Cheng Yuan Chong, Partner

Conclusion: Empowering Audit Excellence

Based on the firms’ experience, Confirmation’s AR/AP functionality has proven a useful additional tool. In addition to higher and faster response rates, streamlined processes, and automated audit trails, the use of an online process has positioned the firms as progressive ones, helping them to attract and retain key talent.

As audit practices continue to evolve, Confirmation remains at the forefront, empowering firms to focus on what truly matters: delivering high quality audit service.

To learn more about how Confirmation can streamline your audit processes, please reach out to us today.