Financial data validation

Financial process validation

A financial process is the same as any other process inside your organisation. Processmapping will identify where possible errors or problems could occur in the system. For example, the financial system may expect that invoices are signed off by a number of senior managers before being passed on to the finance department for processing. This may result in invoices taking a long time before they are entered into the financial ledger and the costs of a project may therefore be understated.

Financial output validation

When it comes to financial information sometimes reasonableness seems to go out of the window. Financial figures should rarely be unexpected as long as they are:

You’ll look at the use of ratios as indicators in Topic 2 of this section.