The risk assessment system can more easily and efficiently examine the financial reporting activity in a company’s general ledger
CHICAGO, October 19, 2021– (COMMERCIAL THREAD) – Grant Thornton LLP has been granted a patent from the United States Patent and Trademark Office for innovations related to the Company’s proprietary Whole Ledger Analytics system.
Grant Thornton created this system to dramatically improve general ledger analysis by assessing the risks associated with each financial reporting transaction. The firm began developing Whole Ledger Analytics over four years ago and has incorporated it into the majority of its audits. Not only does this approach promote continuous improvement in the quality and efficiency of audits, but it also provides unprecedented insights to clients.
Whole Ledger Analytics makes it easier and more efficient for Grant Thornton auditors to examine a client’s financial reporting activity and identify higher risk transactions, human errors and reporting trends. It also identifies opportunities for process improvement, such as automating manual reporting activity and speeding up the close process.
The patent – U.S. Patent No. 11,132,698 (“System and Method for General Ledger Tracking”) – protects and recognizes the company’s analytical techniques for tracking entries in a company’s general ledger. These techniques go beyond dollar amounts and descriptions by calculating transaction risk scores, analyzing numerical and textual trends, and comparing the frequency and nature of accounts used by a business over multiple time periods. Specifically, the techniques also examine the words used to describe transactions, relationships between transactions, and transaction history for the business.
“Basically, Whole Ledger Analytics enables auditors to perform better and more robust general ledger analysis by considering dozens of distinct risk factors on millions of log entries simultaneously,” said Brian Wolohan, partner at in charge of audit innovation at Grant Thornton. . “Our pioneering approach to innovation continues to provide our clients with better audit quality and better insight into all of their organizations, and this patent is one example. “
As described in the patent, Whole Ledger Analytics takes several unique approaches for general ledger analysis, including:
Transactional score – A technique that calculates a composite risk score for each transaction on a general ledger based on the presence or absence of 38 rating indicators.
Account combinations – A methodology that identifies each unique combination of General Ledger accounts to visualize major account models, rank models based on potential risk, and highlight notable combinations.
Numerical and textual analysis – An approach that analyzes transaction amounts and descriptions by evaluating the use of numbers and letters to identify unexpected or unusual activity.
Comparative analysis – A technique that compares over 200 references around financial processes, including value, volume and timing of entries.
A year of patents and awards
In addition to his patent for Whole Ledger Analytics, Grant Thornton was awarded another US patent in June 2021 for innovations related to the company’s control test automation application, cta.x. The app helps businesses comply with laws and regulations, such as Sarbanes-Oxley, by making it easier for them to develop, deploy, and quickly run automated internal control tests.
These two patents follow a strong performance at the 19th Annual American Business Awards® competition, where Grant Thornton won five Stevie® Awards for his leadership and his work in innovation and positive disruption.
“These patents and awards are the result of our entire company commitment to emerging technologies and innovation,” said Chris Stephenson, National Managing Director and Product Innovation Leader at Grant Thornton. “We are proud of the results our mindset has achieved: Whole Ledger Analytics and cta.x bring incredible benefits to our clients and help Grant Thornton advance the accounting and consulting industry. “
For more information on Whole Ledger Analytics, visit www.grantthornton.com/auditinnovation.
About Grant Thornton LLP
Founded in Chicago in 1924, Grant Thornton LLP (Grant Thornton) is the U.S. member firm of Grant Thornton International Ltd, one of the world’s leading organizations of independent audit, tax and advisory firms. Grant Thornton, who has revenues of $ 1.97 billion and operates more than 50 offices, works with a wide range of dynamic public and private companies, government agencies, financial institutions and organizations. civic and religious.
“Grant Thornton” means Grant Thornton LLP, the US member firm of Grant Thornton International Ltd (GTIL). GTIL and member firms do not form a global partnership. Services are provided by member companies. GTIL and its member firms are not agents and do not bind themselves to each other and are not responsible for each other’s acts or omissions. Please see grantthornton.com for details.
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