A different way of working
In times of economic growth, there is a tendency to achieve increases in scale through acquisitions. The economic recession causes companies to adjust to new market circumstances. But how?
VAT decisions are ultimately made by the ERP system (implementation of conditions tables/defaults) or by employees who make entries in the system manually.
Data analysis can be a way of testing whether the VAT decisions are logical. Such analyses can include all the transactions in a selected period (year, quarter, month).
The results of the data analysis can provide insight into the existing risks or opportunities with respect to the remittance of too much or too little VAT. So data analysis works with errors actually discovered - in contrast to statistical sampling - and is therefore more accurate (not a probability calculation).
For purposes of internal control, statistical sampling and data analysis are complementary, but they can also be used independently to provide insight into the extent of risk awareness and into the quality and proper functioning of control measures within the company.
In practice, due to budget limitations, one often finds that sampling is done on incoming invoices and that data analyses are performed on outgoing invoices.
Does your company use all its available information and systems to ensure that strategic goals are achieved?
Our approach can contribute to the improvement of your performance as follows: