Due Diligence For Lenders: 5 Ways to Streamline The Audit Process
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EQ Due Diligence For Lenders

Due Diligence For Lenders: 5 Ways to Streamline The Audit Process

Thursday, June 17, 2021

Scheduling and completing field examinations as part of due diligence can be time-consuming, resource heavy, and inefficient. In this article, the experts at EQ Riskfactor unveil 5 top tips for improving your field examination and survey process.

1. Take a Risk Based Approach To Field Examinations

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As the world starts to emerge from a year of homeworking, on-site visits will once again become a key part of daily risk management. We expect that most lenders will take a cautious approach to completing field examinations; only choosing to prioritise on-site visits for the riskier clients within their portfolio.

With this in mind, EQ Riskfactor’s Due Diligence module uses the Risk Score and other key risk metrics from the core EQ Riskfactor system, to recommend which clients should be examined according to their risk profile. Many metrics come pre-configured, so you can customise the technology to meet different risk appetites.

2. Go Digital

Auditors are highly skilled individuals whose time needs to be protected. Preparing and scheduling field examinations can often be a lengthy process with auditors having to spend time manually gathering information.

With our Due Diligence module, a field examination can be scheduled from within the core EQ Riskfactor System and then assigned, completed, and signed off from within the EQ Due Diligence platform. On the day of the field examination the template, along with an array of EQ Riskfactor reports, are automatically downloaded onto the auditor’s laptop so that you are not reliant on a client’s WiFi.

"EQ Due Diligence finely balances the power of automated, data-driven algorithms with the intuition and gut-instinct of the auditor or surveyor completing the field examination."

3. One Size Does Not Fit All

Lenders often adopt a one-size-fits all approach to field examinations. This means that time is wasted filling in lengthy reports that are not needed if your clients are running their business well and adhering to the rules of their lending facility.

EQ Due Diligence finely balances the power of automated, data-driven algorithms with the intuition and gut-instinct of the auditor or surveyor completing the field examination. From the moment that a field examination is requested in EQ Due Diligence, recommendations are created to highlight which areas need further investigation.

Key risk areas of the field examination are split into separate categories that allow the auditor or surveyor to effortlessly mark off and exclude areas that do not need investigating. The field examination process has been overhauled to match the ‘review’ process available within EQ Riskfactor; moving from lengthy written reports to targeted notes added to each key risk area.

4. Data Extraction Makes Sampling Easier

By combining extracted data with the EQ Due Diligence module, lenders can maximise the time spent on site. With the sales ledger data made available to the system, invoice Proof Of Delivery sample requests can be fully automated. This is based upon a mixture of perceived high-risk items, larger balances, and invoices selected at random.

5. View A Prospect As If They Were A Client

Used with extracted data, the Due Diligence module also allows users to view a prospect in EQ Riskfactor as if they were an existing client; with all the EQ Riskfactor algorithms and analysis available. This allows users to complete a valuable risk analysis before survey resource is utilised, streamlining the process and saving money.

Find out more

To learn more about the Due Diligence module and see the software in action, contact our experts.

Talk To Us About EQ Riskfactor