Transforming how firms and clients exchange audit data

The first exchange between an audit team and a client sets the tone for everything that follows.  

When that exchange is a cluttered PBC list and a series of formatting instructions, the engagement starts in friction. When it's a single, secure invitation to connect a source system, it starts in confidence.  

That's the shift Validis’ data ingestion process is designed to create. It’s not just operational efficiency for the audit team, but a fundamentally cleaner client experience from the opening step. “It’s about getting that data in a client-initiated journey,” explained Michael Turner, CEO of Validis, during a recent webinar.

Validis operates a cloud-based financial data platform that automates the extraction and standardization of accounting data. Instead of sending a traditional PBC list and requesting multiple exported reports, the auditor creates an engagement and the client receives a branded email invitation to securely connect their accounting system. From there, the data is extracted directly from the source system using read-only access, standardized and prepared before flowing into the audit file.

For many audit teams, this represents a shift from the familiar back-and-forth of emailed exports, reconciled spreadsheets and follow-up requests. But as audits become more data-driven, the way firms initiate client collaboration must evolve as well.

The friction in the traditional PBC process

Even in firms that have modernized their audit platform, the data collection process can still be manual.

Audit teams often spend hours:

• Chasing the correct export format

• Reconciling mismatched trial balance and GL reports

• Cleaning inconsistent Excel files

• Confirming completeness before analytics can begin

That time delays the start of meaningful audit work.

“Auditors shouldn’t spend time cleaning and collecting the data,” noted Turner. “They should spend time on the actual value-add activities.”

But the impact extends beyond internal efficiency. Clients also experience the friction:

• Repeated follow-up emails

• Clarification requests

• Re-exporting files when formats don’t align

• Questions about security and permissions

When collaboration begins with confusion, it can shape the tone of the entire engagement.

What a client-initiated model looks like

Structured data ingestion introduces a different starting point.

Instead of asking clients to generate multiple reports manually, the auditor creates an engagement in the ingestion platform. The client receives a branded email invitation to connect their accounting system. After authenticating with read-only access, the data is extracted directly from the source system, standardized into a common data model and checked for quality and completeness before flowing into the engagement platform.

The process is simple for the client. More importantly, it is controlled and secure.

Security concerns are often the first question firms anticipate. Structured ingestion does not mean modifying client records or gaining operational control.

No data is changed. The extraction is limited to read-only access.

For many clients, this approach is actually more controlled than emailing attachments or sharing credentials. The data is pulled directly from the system, reducing the risk of version confusion or incomplete exports.

Reducing the PBC burden

One of the more tangible impacts in the Validis approach is the reduction in PBC workload. Turner noted that the process can complete about 40% of a traditional PBC list in a single step.

That means a significant portion of financial data requests — trial balance, general ledger and supporting information — can be gathered in a single step.

The result:

• Fewer follow-up emails

• Less back-and-forth clarification

• Reduced administrative burden on client teams

• Earlier access to reliable data for the audit team

It also changes the nature of client conversations. Instead of requesting additional files, audit teams can move more quickly into higher-value discussions about variances, processes and risk.

What this means for firms

When data flows directly from the source system into the engagement workflow, firms gain something more valuable than time savings: earlier access to reliable information.  

Mapped trial balances allow analytical review and variance analysis to begin without additional manual steps, compressing the front end of the engagement timeline. For growing firms managing higher volumes of engagements, that compression compounds. More engagements can move simultaneously without proportional increases in administrative overhead.  

Consistency improves as well — standardized, mapped data embedded directly into the methodology reduces variability across teams, offices and staff experience levels. The result is a more scalable delivery model that doesn't depend on every team member doing things the same way by habit.

What this means for clients

For clients, the benefits are less about efficiency and more about clarity. The traditional PBC process can feel opaque — a running list of requests that grows and shifts as the engagement progresses.  

Structured ingestion replaces that with a single, defined action at the start. "Once you click this, I'm not going to have to ask you for seven other follow-ups," Turner said.  

That predictability reduces the administrative burden on client finance teams, but it also changes how clients perceive the engagement itself. A firm that arrives with a controlled, transparent process signals competence before the audit work even begins.  

Building a more efficient client data workflow

At its core, structured data ingestion is not about adding another technology layer. It’s about modernizing how audit firms collaborate with clients in a data-driven environment.

By reducing manual friction, strengthening security and embedding standardized data directly into the engagement workflow, firms can improve efficiency while maintaining control.

Structured data supports growth without compromising governance. It strengthens consistency across engagements. And it allows audit teams to focus on what matters most — professional judgment and trusted outcomes.  

Learn how structured data ingestion can fit into your audit workflow. Connect with a Caseware representative to explore your options.

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