Why Is Unlimited Use of Virtual Data Rooms so Beneficial?

Feb 11, 2010 - by Joel Lessem

It has always puzzled me as to why virtual data room providers charge per data room or per page or total number of users.  How can any company running a deal know exactly how many pages of documents they will have? Or how many users are going to access the deal room? 

Therefore, a buyer is unable to predict the final cost of the VDR. If they misjudge the amount of due diligence documentations or users, they can get stuck with a hefty bill. This type of “multi-line item” quoting is not designed with the customer in mind.

The other item I never understood is why the limitation on the number of deal rooms?  It’s not uncommon to have multiple data rooms for a single project.  More so, it’s the ability to start getting “deal ready” and exchanging documents early on in the mandate. Unlimited use also broadens the scope of use.

Virtual Data Rooms for Financial Audits

May 27, 2010 - by Joel Lessem

If anyone  has ever had the pleasure of conducting a financial audit he/she is all too aware that it’s a time consuming process.  The audit process has four main stages:

1. Planning & Risk Assessment:  Are there other factors that could have a material impact on the company and are not evident in the financial reports?  What are the risks of an inaccurate audit opinion?
2. Internal Controls Testing: Are the financial controls rigorous, consistent and accurate?
3. Substantive Procedures: Detailed review of financial information.
4. Finalization:   Create the audit report.

As one might imagine, auditors are typically encamped in the audited company’s offices for weeks, pouring over financial information. It’s inconvenient for the office and it’s inconvenient for the auditor.

Audit Firms Turn to Virtual Data Rooms to Help Improve Audit Process

Apr 12, 2012 - by Debbie Stephenson

Disappointing results from a recent inspection report by the Canadian Public Accountability Board (CPAB) are driving audit firms to find new solutions that challenge the traditional audit process.

The CPAB, which oversees the work of Canadian audit firms, said it was “disappointed” in the progress being made on improving audit quality. Its concerns were directed toward both smaller regional firms and the “Big Four” national accounting firms, which audit about 94% of Canada’s publicly traded companies by market size. CPAB found deficiencies between 20 -26% of the audit files it reviewed at the Big Four firms and 47% of the audit files it reviewed from 10 smaller firms.