Evidence-first audit
Procedure automation

valid8 audit

Automated substantive testing for auditors.

Evidence First

Audit evidence is the foundation of any audit opinion, that's why Valid8 starts with evidence. Using various documents and API connections, auditors can rapidly assemble a data base of financial evidence (independently sourced and 3rd party verified) that can be used to automate various low-level audit verification procedures.

full population verification

Unlike accounting transaction analytics and anomaly detection solutions, Valid8 Audit creates associations between evidence and accounting transactions. Banking transactions are matched to cash journal transactions which are then traced out to the originating entry. The result is a verification disposition on every single client transaction. Auditors can move beyond low level verification work and focus on higher value, more strategic issues.

world class audit quality

Valid8's patent-pending matching and tracing algorithms move auditors away from sampling, toward full population testing resulting in a dramatic improvement in evidence coverage and audit quality.


Extract Bank Statement Transactions

Bank statement formats are never consistent and vary within the same financial institution over time.  Setting up templates for each format is burdensome and takes time.  

Valid8 uses machine learning to avoid the need to create and manage templates/readers.  Post any statement from any institution and get transactions back in minutes to hours without ever having to open the statement files.

Automated Quality Control

OCR isn’t perfect, no matter what platform you use, errors will occur.  Finding, fixing, and proving data quality consumes time and resources slowing down the case.

Valid8 identifies each period for each account within a file then extracts the account-period metadata (starting balance, ending balance, start date, end date, etc…).  The metadata is used to compare against the extracted transactions.  Any statement is flagged if transactions don’t add up to the balances, fall outside the period, or balances don’t align to prior and next period’s balances.

Track Statement and Data Status

Naming, organizing, and tracking status of thousands of pages of bank statements and other case documents takes time and discipline.  Summarizing and reporting on data set status adds more complexity.

Valid8 Investigations tracks status for every statement file, account, period, and transaction.  Current status is displayed with easy to read, real time data visualizations.  Identify missing statements, find OCR errors, and assess overall data set status with a glance. 

Group and Categorize

Critical to understanding the use of funds is the ability to identify large purchases and assets.  Every case is different and to clearly explain various categories of assets Investigators need the ability to define any number of custom categories.

Valid8 allows the creation of custom categories and normalizes the field values so you can visualize categories as various Sources and Uses of funds.  The data visualization is interactive with 1-click filter and export of schedules.

1-Click Export to Excel

Every case requires different analysis techniques. The most common way to accomplish the one-off  tasks is Microsoft Excel.

At any point, users are 1 click away from a comprehensive database extract into a Microsoft Excel file. In addition to transactions, Valid8 also calculates daily balances for each account.

sync with microsoft excel

Cleaning up the description field, adding Bates Numbers, grouping and categorizing can all be done easily in Microsoft Excel, the hard part is maintaining the file as the data set grows.

With Valid8's 1-click export to Excel, professionals can do any clean up work needed then import the changes back into the version-controlled database.

Visualize The Flow of Funds

Tracing the flow of funds between various accounts and entities requires significant effort with standard office software packages.  And more importantly, it’s difficult to create a clear understandable narrative with spreadsheets, tables, and lists.  

Valid8 uses interactive visualizations to simplify large amounts of data.  Visualize the flow of funds between bank accounts and legal entities, generate visual case exhibits and schedules with a single click and deliver a compelling narrative.

Identify Fraudulent Transfers

Any payments in aggregate of $600 or more made within 90 days of declaring bankruptcy that resulted in a creditor getting more than they would otherwise be entitled to is considered a Fraudulent Transfer.  Every fiduciary is required to examine the debtor and determine if any fraudulent transfers have occurred.

To simplify this analysis, users can take any check register in Excel or CSV format and upload into the bank data to quickly categorize by payee.  Once loaded, simple pivot tables by Payee are used to identify any Fraudulent Transfers.  

Find Undisclosed Assets

Finding undisclosed assets and accounts is a critical step for any investigation.  Each request for additional information delays the ability to start the final analysis.  Quickly finding undisclosed assets compresses data prep time.

Valid8 identifies all transactions that may be potential transfers  outside of the existing data.  Professionals review the list to identify undisclosed assets and accounts.  As additional statements and transactions are added, Valid8 maintains version control in a centralized, online repository.

SOC2 Certified

Valid8 works on some of the highest profile fraud cases in the world. Data security is our top priority. Valid8 is a SOC2 certified solution.


Automated Evidence Collection

Collecting audit evidence is burdensome and full of latency making hitting deadlines tough. Auditors must often decide how much evidence is enough and make a tradeoff between coverage and risk.

Valid8 Audit rapidly collects banking activity directly from banking institution APIs or from PDF statements creating a database of financial evidence. Auditors use the data to automate verification procedures.

Full Population substantive testing

Sampling risk was introduced into audit procedures as a recognition that there is no way for humans to review evidence for every single accounting transaction a client makes.

Rather than using manual procedures and humans to confirm, vouch, and verify accounting transactions, Valid8 uses patent-pending matching and tracing algorithms that provide full population substantive testing for any account on the financial statement.

Subsequent Collection Verification for A/R

Getting client customers to reply to A/R confirmations in a timely fashion is nearly impossible leaving auditors with manual alternative procedures like tracing invoices and payments out to bank statements.

Valid8 automates this procedure by generating a Subsequent Collections workpaper that shows for every outstanding invoice and payment whether or not a corresponding banking transaction has occurred since the cut-off date.

Revenue Verification

Time spend verifying revenue can get out of hand quickly. Complexities like multiple types of revenue, 3rd party point of sale systems, deferred revenue procedures, and related sub-ledger activity require more time and resources.

Valid8 revenue verification workpapers identify what percentage of revenue can be traced back to the cash journal to help identify complexities in the revenue cycle. In addition, for any revenue that can be traced to the cash journal, substantive testing using banking activity is performed on that full population.

SOC2 Certified

Valid8 works on some of the highest profile fraud cases in the world. Data security is our top priority. Valid8 is a SOC2 certified solution.