How to Prepare for your Audit

How to Prepare

There are several things that can be done to ensure that an audit runs as efficiently as possible.
Firstly, ensure that all the required accounting information is uploaded to our site.
Below is a summary of the documents and data to be prepared for the audit. If the documents are all readily available, the audit can be undertaken quickly and without disruption.
Input: Documents We Require
All primary loan/mortgage document records including:
Statements from the lender
Loan contract or offer documentation
All correspondence to and from the lender
Any interest rate cards or changes
A file in .csv or Excel format that includes all debits and credits that relate to the loan most likely an extraction of the loan payments from the payment’s ledger.
Calculations: Our algorithmic process

Debits are entered into three categories: advances, charges due and interest.

Then the charges are assessed as to whether they are allowable against the terms of the contract.

Credits are also sorted into categories: capitalisations and scheduled interest/repayments.

Advances, capitalisations and allowable charges are summed to give the Payment Schedule Balance for an interest only loan.

For repayment loans, the scheduled repayment for each month (based on the applicable interest rate and remaining term of the loan) is added to the Payment Scheduled Balance.

Data and information is collected from the company’s accounting systems and files and a Data Request is also sent to the Creditor to ensure full documentation is made available for the Audit to be confirmed as accurate and completed.

If a documentation shortfall was identified a process of notional reconstruction of the account will be completed and the missing information will be requested from the lender.

All relevant data is entered into a calculation system designed to provide accurate and easy-to-understand information which demonstrates the status of the interest-bearing instrument.

If, after summing other payments, the debtor is in credit with respect to the Payment Scheduled Balance, they have made overpayments.

If a Debtor has a greater outstanding balance than the Payment Scheduled Balance, we only calculate the Creditor’s interest on the payment schedule balance as, by our definition, all underpayments would be with respect to calculated interest and interest cannot be charged on interest unless contractually allowed.

The system’s crosscheck guarantees the accuracy of the result, but also that each of the challenges are identified and shown in the Audit.

Output: Documents We Produce

A Full Audit Report containing the results of our audit.

Appendix A: Information relating to charges

Appendix B: Interest Calculations

Appendix C: Overpayments and application of Statutory Interest to the overpaid balance (if applicable)

Full Transaction List

When exact is the only option

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