EMIs - do you find preparing for audits tough?

Ross McGee
Ross McGee

There is not a single minute when accuracy is not prioritised within a financial team at an EMI (Electronic Money Institution). Why? Audits. Despite only being conducted a handful of times throughout a year, audits require utmost accuracy and for regulations to be complied with at all times.

Audits therefore are events which influence the everyday actions of EMIs. However, although they are faced by every finance team, not all of them face the same level of pressure when it comes to preparing for audits. If you’re currently wondering how some of your financial peers don’t sweat an impending audit, you best read on.

Challenges of audit preparation for EMIs

To operate as an EMI, firms must ensure that they safeguard their clients’ funds. Audits therefore inevitably examine whether this requirement is being fulfilled.  

Yet simply enacting this condition is not enough for auditors. In addition, EMIs must:

  • Conduct account reconciliation – prior to an audit, EMIs must reconcile all their accounts and resolve any discrepancies. This is essential because it evidences whether client funds are segregated, if their totals are known, and if they are properly safeguarded.

    However, time is of the essence during the run-up to an audit. Reconciliation – if done manually – is therefore not conducive to this period due to it being labour-intensive and susceptible to errors, resulting in personnel being distracted away from other pressing audit tasks.
  • Provide extensive documentation – auditors require comprehensive evidence of the movement of all financial transactions which means gathering a vast array of documents – a task that can be daunting and prone to oversight when finance professionals have multiple responsibilities and money is moving faster than ever these days.

Aurum Solutions: enhancing FCA audit readiness for EMIs

Fortunately, Aurum Solutions offers a solution that streamlines these preparatory actions, addressing the unique needs of EMIs with the following features:

  • Automated reconciliation – Aurum automates the entire reconciliation process so that it is completed in a matter of minutes, eliminating errors that require revisionary actions, and ultimately reducing the time and effort required to prepare for an audit.
  • Comprehensive audit trails – the Aurum platform maintains detailed audit trails for all transactions, providing a transparent and verifiable record that is crucial for demonstrating compliance with regulations. This feature significantly simplifies the process of gathering and presenting necessary documentation during an audit because it is continuously and automatically generated without the input of anyone.
  • Report generation – Aurum offers easy generation of reports required for all sorts of audits. These reports can be customised to meet specific audit requirements, ensuring that EMIs can quickly and accurately respond to any requests for information. Best of all, finance professionals can rest assured that all the data informing reports is accurate because it is sourced directly from Aurum – a platform designed to ensure data integrity.

Aurum: an ally against audit stresses

Whilst audits will never go away, the struggles of preparing for them can. Automation from Aurum, paired with a focus on what matters most to regulators, extinguishes the stresses of audits, delivering swift operations and complete transparency.

To gain compliant records and be ready for the strictest scrutiny from auditors with none of the usual stress, book an Aurum demo today.

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