LFA and financial audit

 Similarities between LFA and traditional financial audit:

• Unbiased opinion. Logistics auditors are independent, disinterested parties, thereby guaranteeing objective opinion.
• Confidentiality. Strict confidentiality is a key element of the contract and is strictly adhered to.
• Responsibility. Logistics auditors take full responsibility for the results of the audit and any recommendations presented to the client.
• Methodology of making decisions: logistics auditors provide an analysis in a manner consistent with the way CFOs and other executives make investment decisions.

 Differences between LFA and traditional financial audit:

• Methodology – introduction of the logistics auditors into the client's supply chain management. The traditional request for documents from accounting department is not appropriate if the logistics system is not transparent.
• Range of questions under investigation. A traditional financial audit checks the consistency of documentation w ith legislative requirements. In addition to checking document flow, a logistics audit investigates a much wider range of questions including relationships with suppliers and customers, supply planning, methodologies and procedures, logistics infrastructure, quality control, and correspondence of logistics costs to local market conditions..
• Range of experts working on the project. A traditional financial audit is performed by auditors. A logistics audit is performed by experts in different spheres from logistics professionals and financial auditors, to transport and warehouse systems operators not only in headquarters, but also in the client's regional operations.