Audit Trail Verifier

Overview

The Audit Trail Verifier skill provides systematic verification of financial data against source documentation during due diligence. It traces reported metrics back to bank statements, contracts, and other primary sources to validate accuracy and identify discrepancies.

Capabilities

Bank Statement Reconciliation

• Match reported revenue to bank deposits
• Verify cash balance accuracy
• Reconcile payment timing differences
• Identify unexplained discrepancies

Contract Verification

• Match revenue recognition to contract terms
• Verify pricing and payment terms
• Check contract status and renewal dates
• Validate customer counts against contracts

Invoice and Payment Tracking

• Trace invoices to payments received
• Analyze days sales outstanding (DSO)
• Identify collection issues
• Verify accounts receivable aging

Expense Verification

• Match expenses to supporting documentation
• Verify vendor contracts and commitments
• Check employee payroll against records
• Validate equity compensation records

Usage

Verify Revenue

Input: Reported revenue, bank statements, contracts
Process: Trace revenue to sources, reconcile differences
Output: Verification report, discrepancy list

Reconcile Cash

Input: Reported cash, bank statements
Process: Compare balances, identify differences
Output: Cash reconciliation, unexplained items

Verify Contracts

Input: Customer list, revenue claims, contract files
Process: Match contracts to revenue, check terms
Output: Contract verification summary, issues found

Audit Expenses

Input: Expense reports, supporting documentation
Process: Sample and verify expenses, check approvals
Output: Expense audit results, policy compliance

Verification Categories

Category	Key Verification Points
Revenue	Bank deposits, contracts, invoices, recognition timing
Cash	Bank statements, reconciliations, restricted cash
Receivables	Aging, collectability, concentration
Payables	Vendor agreements, payment terms, accruals
Payroll	Employment records, compensation agreements

Integration Points

• Financial Due Diligence: Core verification for financial DD
• Financial Model Validator: Validate historical data accuracy
• Legal Due Diligence: Coordinate contract reviews
• Financial Analyst (Agent): Support verification work

Red Flags

• Revenue not matching bank deposits
• Large reconciling items without explanation
• Significant revenue concentration in month-end
• Missing or incomplete contract documentation
• Unusual related party transactions
• Unexplained cash movements

Best Practices

1. Request direct bank feeds or certified statements
2. Sample test across periods, not just recent
3. Focus on material items and unusual patterns
4. Request management explanations for discrepancies
5. Document verification trail thoroughly