Intelligent Risk Monitoring - Automation of partner checks
In our experience, it is crucial for companies to exercise due diligence when verifying their suppliers and business partners. This allows potential VAT fraud to be detected well in advance, and proof of this continuous and detailed verification can be provided to the tax authority at any time. Another important aim is to mitigate the risks arising from suppliers that are not sufficiently stable from a financial, tax or other legal perspective, or the risk of non-payment by customers.
By automating the process using software, the entire partner portfolio can be verified not only at the time of tendering or subcontracting, but also monthly, weekly or even daily, which can be an advantage not only in minimising risk, but also in minimising the manual work involved in such thorough partner screening.
When auditing supply chains, the tax authority focuses on the “due diligence” exercised by companies making purchases when verifying their subcontractors, with a view to detecting tax evasion and exercising the right to deduct. The tax authority will therefore examine, among others,
- whether the taxpayer has verified the suppliers;
- when, how frequently, and based on what criteria it has done so;
- with what results, and how the taxpayer has arrived at such results; and
- whether the taxpayer can prove that the verification has taken place.
PwC’s Intelligent Risk Monitoring (IRM) makes it possible to verify both prospective partners (onboarding check) and existing subcontractors during the contractual relationship (portfolio check) in a verifiable and automated way, in accordance with NAV’s audit requirements.
Due to the nature of the solution developed by PwC, no implementation or complex IT processes are required. The platform can be easily accessed after subscribing.
Kezdőlap, beszállítók listája, és értékelésük
The nearly 70 risk aspects considered in the review draw on the expertise and decades of experience of PwC’s VAT specialists, and on relevant tax authority practice and case law. In this way, the software not only offers an IT solution, but also our professional experience and expertise.
PwC’s IRM system uses databases to set the appropriate parameters for monitoring company data, and provides an automated solution not only for verifying partners, but also for the following:
- monitoring the financial stability and solvency of customers and other business partners;
- monitoring the stability of partners supplying raw materials and components for manufacturing or other uses, in order to reduce potential supply risks;
- monitoring the reliability of subcontractors, other business entities involved in joint deliverables, or screening them for quality assurance.
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Our Intelligent Risk Monitoring solution not only eliminates the manual work involved in onboarding suppliers/partners, but also provides a tool that allows our clients to perform monthly, weekly or daily comprehensive monitoring of the entire supplier/partner pool with minimal time and resources, through continuous automated reports.
Beszállító portfólió értékelési dashboard
