Using technology to enhance the audit process

DataSnipper operates within Excel, where a significant amount of audit work is already performed. Its features allow auditors to extract, match, link, and “snip” information from supporting documents (e.g. invoices, bank or broker statements, and lease agreements) directly into audit workpapers with clear audit trails that eliminate the need for manual cross-referencing. The tool can be enhanced with add-on modules, such as the Financial Statement Suite.

Driving efficiency in the audit process

DataSnipper adds value through:

Substantive testing: DataSnipper reduces errors from manual data entry and testing time through automated data extraction and matching across populations, and the ability to extract key details (such as invoice numbers, dates, and amounts) from supporting documents and tie them directly to testing schedules. Each data extraction and “snip” retains a reference to the original source, creating meaningful documentation and an audit trail that is easy to review without the need for manual cross-referencing.

Review process: DataSnipper creates clear links between audit evidence and testing results, minimising time spent navigating attachments. This allows for faster and more efficient reviews.

Financial Statement Suite: DataSnipper automates mathematical checks, which helps reviewers quickly identify balances that do not foot, and assists with identifying expected (and unexpected) financial statement changes, allowing for effective oversight. 

Driving audit quality through technology

In addition to impacting efficiency, DataSnipper helps enhance audit quality. The linkage between workpapers, supporting evidence, and conclusions not only improves file review efficiency, it also improves transparency and consistency across audit engagements. It strengthens the overall audit trail, helping ensure engagements are well-documented and easily reviewable.

Equally as important, the automation not only reduces errors from manual data entry, it also allows audit teams to reduce time spent on repetitive tasks and spend more time applying professional judgment and scepticism – skills that are crucial to audit quality.

A step toward smarter auditing

DataSnipper exemplifies how technology can elevate both performance and quality in the audit process. The adoption of tools like DataSnipper reflects the profession’s broader shift toward the use of technology in auditing, and reflects the industry’s commitment to using innovation and technology to improve the way it delivers high-quality audits. While it doesn’t replace an auditor’s expertise or professional scepticism, it helps auditors apply those skills more effectively.

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With 25+ years of experience, Elliot Isaac is a financial services partner providing assurance services to a broad spectrum of investment entities, including long/short equity, funds-of-funds, distressed debt, and private equity funds. His clients also include broker-dealers and management companies.