Case study - Reconciliation analysis
For one Hong Kong-based fashion group, analysing and ensuring integrity and completeness in their order to cash cycle was proving difficult. The group provides footwear, clothing research design, manufacturing and brand development, and has branches across Mainland China.
Many of these branches commonly used personal bank accounts for cash collection. PwC knew this was a high-risk area for identifying revenue against cash collection, but manual reconciliation across private accounts, bank journals, and recognised branch revenue is time-consuming and rarely accurate.
Instead, PwC integrated monthly private account data into fiscal year, segmented by region and account ID, and used data visualisation to test the data’s completeness and accuracy.
Visualisation allowed rapid order-to-cash analysis and checking of private account debt and credit amounts. Although the partnership is still ongoing, PwC was able to provide one-to-one checks of branch private account data with bank details.
It’s that ability to identify patterns and trends from highest level, and then quickly drill down to a particular vendor or employee, for example, to solve the problem that sets FPA apart.
Case study - Internal audit and controls
A regional Malaysian security guard firm was employing a relatively manual internal audit process. This meant the group was unable to perform deep-dive reviews or identify unusual transaction patterns.
To reveal trends and gaps in back-office processes, cash management, purchasing and payroll, PwC deployed an integrated audit of data and controls, including sample testing and data analytics.
Comfortingly, the internal audit team discovered there were very few exceptions and that most controls were effective. However, the audit did reveal instances of guards working excessive hours – more than 18 hours every day for a month. Prior to the audit, management was unaware of this irregularity.
Management has now implemented stringent preventative and control measures to improve conditions.
As a result of FPA, guard welfare has improved, maximum hours are no longer exceeded, and a potential breach-of-contract issue has been averted.
Case study - Purchasing processes visualisation
After implementing a SAP solution and expanding its business operations, a solar panel manufacturer in Vietnam required a detailed overview of its main purchasing processes. The goal was to identify and address anomalies, and remove any obstacles to future success.
PwC’s audit and data teams identified six important issues which it communicated on dashboards to the Financial Controller.
The data visualisation function allowed management to clearly and fully appreciate the impact of these issues, and resolve them accordingly.
With the powerful functionality of FPA now demonstrated, the manufacturer is keen to deploy additional FPA modules for its next audit.