For an insurance carrier, quarterly auditing and reconciliation fell from five people working for a week to one person working for a day. Manual checks found that 99 percent of outputs met audit requirements, compared with 90 percent under the prior process.
Our StrataEdge Reconciliation Platform compares contracts and financial records, shows supporting evidence, and routes discrepancies to people for review. Building it required decisions about the records, the review process, and ongoing costs.
Testing against completed audits
Completed audits give us examples of the documents, calculations, and decisions the software must handle. We compare outputs with accepted results and ask auditors to review differences.
A difference can come from a software error, an ambiguous contract, incomplete records, or an error in the earlier audit. Agree on who will investigate and how corrections to prior work will be handled.
When to run the checks
Some comparisons can run when a record arrives. Others need information available only at the end of a reporting period. Work out when the inputs are complete enough to check.
More frequent checks can let people correct errors earlier. They also create review and support work. Set the schedule around when results are needed and someone can act on them.
What auditors review
A reviewer needs the records and calculations behind a discrepancy. We define which results need review, what evidence to show, and how decisions and corrections are recorded. We also agree on what happens when records are missing or a check cannot finish.
Ongoing costs
Model calls, document processing, infrastructure, and storage cost money. So do exception review, monitoring, support, and changes to documents or business rules.
We check which results can be reused and which steps need a model. Ordinary code may be better for a calculation with a defined rule. We call a model repeatedly only when the result is worth the cost.
Data handling
Contracts and financial records can contain sensitive information. Define hosting, model access, data movement, retention, and security review for the engagement.
A client-managed environment can help apply existing controls. The team still needs to approve who can access records, which services receive them, and how access and changes are recorded.
The staff time released
Less quarterly work frees up staff time. That is not a budget cut unless spending falls. Decide where the time will go and measure the change: more time to resolve discrepancies, investigate recurring problems, or take on other work.
Request a platform demonstration to see how it could fit your records and review process.