Pioneering Fintech Solutions
Dr. Necdet Saglam discusses the innovative Financial Audit Software, its market impact, global expansion plans, and future integration with AI and blockchain to revolutionise financial auditing.
Dr. Necdet Saglam stands as a beacon of innovation in the fintech and auditing software industry. As the managing partner of 2N Innovation, based at Anadolu University Science Park in Turkiye, Dr. Saglam has been instrumental in developing cutting-edge solutions that are transforming the landscape of financial auditing. His extensive expertise is reflected in his numerous publications on auditing and International Financial Reporting Standards (IFRS), which have become essential resources for professionals in the field. Under his leadership, 2N Innovation has developed the Financial Audit Software (FAS), a revolutionary tool that automates and streamlines the auditing process, ensuring compliance with international standards while enhancing efficiency and accuracy. Dr. Saglam’s commitment to excellence and innovation has not only positioned his company as a leader in the industry but has also set a new benchmark for financial auditing solutions worldwide.
In our interview, Dr. Saglam delves into the intricacies of the Financial Audit Software, offering insights into its development, features, and the market needs it addresses. His vision for the future of financial auditing is both ambitious and inspiring, as he discusses the global expansion plans for FAS and the integration of emerging technologies like AI and blockchain. The conversation provides a comprehensive understanding of how FAS is not just a tool but a transformative force in the auditing sector. Let’s explore Dr. Saglam’s perspectives and the innovative solutions his company is bringing to the global market.
“The Financial Audit Software (FAS) is designed to automate and streamline the auditing process, ensuring compliance with international standards while enhancing efficiency and accuracy.”
Can you provide an overview of the key features and benefits of the Financial Audit Software (FAS) presented in the investor deck?
The Financial Audit Software (FAS) is a cloud-based audit platform that offers several key features and benefits:
Automated Reporting: FAS generates audit reports of up to 2,000+ pages automatically, significantly reducing manual effort.
Web-based Access: Users can access FAS from any device without installation, enhancing convenience and mobility.
IFRS/ ISA Compliance: The software supports International Financial Reporting Standards (IFRS), International Standards Accounting (ISA).
XBRL Data Collection: It collects financial data in XBRL format, an open standard based on XML, for online financial data exchange.
Audit Substantive Tests and Risk Assessment: The software allows real-time querying of financial data and automates critical audit functions, like generating trial balances and performing IFRS conversions.
Collaboration Features: Audit teams can work simultaneously on the same engagement, updating stakeholders in real time, which increases efficiency and accuracy.
These features significantly improve efficiency in the auditing process, enhance collaboration, and help users comply with international standards.
The Financial Audit Software (FAS) is a groundbreaking tool that revolutionises the auditing process with its automation capabilities, ensuring compliance with international standards while enhancing efficiency, accuracy, and user convenience.
What specific market needs or gaps does the Financial Audit Software aim to address?
FAS addresses several key market needs:
Automation of Audit Processes: Many audit processes are manual and time-consuming. FAS automates these, including report generation, trial balance creation, and audit tests, saving time and resources. Software has automatic auditing tools and business intelligence.
Compliance with International Standards: By adhering to IAS, IFRS, and ISA, FAS meets the need for globally standardized audit practices, which is critical for businesses with international operations.
Data Handling and Security: Traditional audit methods often involve handling data in formats like Excel, which can lead to errors. FAS reduces these errors by utilizing XBRL, which is more secure and reliable.
How is the pricing model per module, and what does it include?
It likely refers to a per-audit or per-user pricing model, including access to all key features of the software like report generation, IFRS conversion, and compliance tools. An initial entry price (Users who purchase the program are required to enter for a minimum of 5 audit contracts, which constitutes the entry fee) is charged at the sale of the auditing company, and in the following year, an annual usage fee is 40% of the current annual sales price.
Could you elaborate on the target audience or customer segments for this software?
The target audience for FAS includes:
The target is Audit Firms in the World. With over 420 audit companies in Turkiye, 130 of which are already FAS clients, the software primarily serves the auditing sector.
Financial Institutions: Firms that require IFRS compliance and frequent audits. FAS has an IFRS converting module.
Corporate Clients: Companies needing accurate and automated audit processes to comply with international standards (IFRS) and reduce labour costs.
Calculations: There are many calculation tools for IFRS converting
Enterprises: Especially those expanding internationally and needing reliable financial auditing tools.
What are the global expansion plans for the Financial Audit Software, and which markets are you prioritizing?
FAS sees high growth potential in emerging markets such as Europa, America, Russia, Central Asia, which shows strong growth rates for auditing services. Additionally, the company is looking to expand into regions like MENA and Asia. These regions are particularly attractive due to their increasing demand for standardized auditing software and automation.
How does the software differentiate itself from other financial audit solutions available in the market?
FAS distinguishes itself in several ways:
Cloud-Based and Web Accessible: Unlike many traditional audit tools that require installation, FAS is fully web-based, making it accessible from any device.
Comprehensive Automation: Its ability to automatically generate complex audit reports, including IFRS-compliant financial statements, sets it apart from competitors.
Security and Compliance: It emphasizes security by design and strict compliance with international standards, offering advanced features like automated audit tests, real-time collaboration, and data protection.
SWOT Analysis:
Strengths: Advanced technology, secure design, and comprehensive onboarding for users.
Weaknesses: Geographic risks and customer resistance to change.
Opportunities: Growth in emerging markets and integration with emerging technologies like AI.
Threats: Economic fluctuations affecting market conditions.
“We are excited about the upcoming updates to FAS, including multi-language support and integration with cutting-edge technologies.”
What kind of feedback have you received from users or investors about the Financial Audit Software so far?
While specific testimonials from users or investors are not listed, FAS’s growing market share (30% of the audit market in Turkiye) and adoption by 130 audit companies suggest positive reception. The software’s ease of use, compliance features, and automation likely drive its popularity. Feedback from active users indicates a solid user base, reflecting high satisfaction.
Are there any upcoming updates or new features planned for the software in the near future?
Yes, a new version is coming in many languages. FAS identifies integration with emerging technologies like AI, machine learning, and blockchain as potential areas of expansion. These technologies can further streamline audit processes, enhance security, and improve accuracy.
How does the software ensure data security and compliance with financial regulations?
FAS ensures data security through:
Cloud Security Measures: Data is stored securely in the cloud, and users must log in with a password to access the system.
Compliance with International Standards: FAS complies with IAS, IFRS, and ISA, providing a secure framework for conducting audits and reporting financial statements.
XBRL Standard: The software uses XBRL for financial data handling, a secure, open standard for data exchange.
Can you share any success stories or case studies from companies that have used the Financial Audit Software?
The investor deck does not include specific case studies or success stories. However, the fact that 130 out of 420 audit companies in Turkiye are using FAS, along with active users, suggests that the software has had a positive impact on its clients. These numbers demonstrate its growing adoption and the satisfaction of its users.Edit
