The definition of Auditability according to the World Wide Web:

“The ability to keep an accurate record of all transactions for reconciliation purposes”

Known synonyms are the ability to analyze, check, review or verify. A broad and very popular point of attention for many entrepreneurs and companies. Putting auditability into practice however seems more challenging than people would expect.

Auditability put to the test

When employees engage in agreements that involve the company it is always good to know who made which agreement and when. Especially in complex or large scale decision making processes the reality is that transparent authentication is not as straightforward as it seems.

A large Dutch, worldwide operating bank suspended 90 mortgage brokers in November 2016. Reason is the alleged forgery of clients' autographs on mortgage documents. Despite the bank’s statement that no clients were financially affected, the DNB and AFM, both Dutch regulatory financial institutions, announced an investigation. The bank committed to a full analysis of all mortgages sold from 2013 onwards, over 100.000 clients in total. Result; a huge financial burden, losing client trust and future fines.

Especially in these processes, offering transparency and documentation of agreements made in the past and future, digital authentication plays a huge role. The obvious advantages of digital signing are well known; improve your conversion, save time and improved legality. There is however another significant advantage; auditability.

Digital Signing

Digital signing ensures that an organisation knows exactly where, when, with which IP address and through which email address a document is signed. This enables a company to detect misuse of company's protocol in an early stage through the generated audit trial. But more importantly it prevents the misuse to begin with. When an employee knows that all the agreement information is logged, he or she will think twice of forging an autograph. The spread of IP- and Email addresses can be reviewed with the click of a button.

“The ability to keep an accurate record of all transactions for reconciliation purposes”

Perhaps this definition will also inspire your company’s protocol. This specific advantage of digital authentication is often unknown or underestimated. We feel it is important to mention and explain its advantages!