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How do I audit and verify my equity documentation using Ledgy's Document Auditor?

Easily verify document data, match documents to transactions, and identify mismatches between documents and transactions

Frances Agoncillo avatar
Written by Frances Agoncillo
Updated over 2 weeks ago

Introduction

The Document Auditor automatically compares your equity documents with your transactions to ensure data integrity across your cap table. It identifies missing links, spots inconsistencies, and verifies proper document sharing - all from a single dashboard.

This feature helps you maintain accurate records by highlighting documents that should be linked to transactions, finding transactions without documentation, and detecting mismatches between document data and transaction details. The result is greater confidence in your equity data and simplified compliance verification.


Benefits

The Document Auditor helps you maintain accurate equity documentation by:

  • Finding missing links: Quickly identify documents that should be linked to transactions but aren't, and transactions missing supporting documents.

  • Spotting inconsistencies: Detect mismatches between your document data and transaction data before they become problems.

  • Ensuring privacy: Verify documents are only shared with the correct stakeholders, preventing compliance and privacy issues.

  • Saving time: Manage document-transaction relationships in bulk from a single dashboard.

This powerful feature automatically checks all your documents against transactions, providing comprehensive verification that increases trust in your equity data.


How to access document auditing features

Ledgy's document auditing capabilities are available at different levels depending on your plan:

Launch or Growth Plans

  • No access to document data extraction or auditing features

Scale Plan

Enterprise Plan


How does document data extraction work in Ledgy?

Ledgy automatically extracts structured data from your equity documents. This extracted information is visible in each document's sidebar and powers several helpful features:

Document sidebar information

When you open any document in Ledgy, you'll see extracted data in the sidebar such as:

  • Document type (grant, equity settlement, etc.)

  • Stakeholder name

  • Transaction amount

  • Date

  • Other relevant document details

This extracted data helps you quickly verify document information without manually reviewing each file.

Data room enhancements

The document data extraction also improves your experience in the data room by:

  • Displaying the document type (extracted from the document)

  • Having an additional default Stakeholder name column which you can compare against the stakeholder(s) the document is shared with in the Sharing column.

  • Having the ability to add other extracted data columns to customise your view.

  • Enabling search by document type or document stakeholder name (e.g., show all "grant" documents or find all documents for "Tom").

Basic document auditing features

For individual documents, you can now:

  1. See suggested transaction links: When viewing a document, Ledgy will suggest transactions that match the document's extracted data but aren't currently linked

  2. Identify potential mismatches: Ledgy highlights when a document is linked to a transaction but the extracted data doesn't match (e.g., different stakeholder names)

  3. Link or unlink with one click: Easily fix issues by linking suggested transactions or unlinking mismatched ones directly from the document sidebar

Transaction-level document suggestions

When viewing a transaction form, you'll also see document suggestions:

  • Suggested links: Documents that match this transaction's details but aren't currently linked

  • Potential mismatches: Documents linked to this transaction where key data doesn't match

These features make it much easier to maintain accurate relationships between your documents and transactions without needing the full Document Auditor dashboard.


Understanding the Document Auditor dashboard

Where to find the Document Auditor dashboard

  1. Expand Documents in the left-hand navigation

  2. Find "Auditor" under Documents

  3. Click on it to view the comprehensive auditor dashboard

View documents by audit category

The Document Auditor dashboard organises your documents into different categories and you can filter the grid based on these categories.

  • Suggested Link: Documents that should be linked to specific transactions but currently aren't

  • Potential Mismatch: Documents linked to transactions where key data doesn't match

  • Correct Link: Documents properly linked to matching transactions

  • No Matching Transaction: Documents without any matching transactions in Ledgy

  • No Matching Document: Transactions without any attached documents

  • Ignored: Documents like holding confirmations that aren't expected to match specific transactions

Compare document and transaction data

You can easily verify document information against transaction records:

  • By default, the auditor compares three key fields: stakeholder name, amount, and date

  • You can customise which fields to compare by clicking "Select fields to compare" at the top of the page

  • Deselect fields that aren't important for your verification (for example, if transaction dates aren't exact)

  • Add additional comparison fields like strike price or share price as needed

  • Mismatched values appear in red for quick identification

Take bulk actions

Save time by managing multiple documents at once:

  • Select all documents in a category or choose specific ones

  • Link: Attach multiple documents to their matching transactions with one click

  • Unlink: Remove incorrect associations between documents and transactions

  • Delete: Remove outdated or duplicate documents

  • Upload: Add new documents directly from the auditor dashboard

Export audit results

You can export your audit data to share with the team or for record-keeping:

  • Filter the view to show the specific category you want to export

  • Click "Export" to download the data as an Excel file

  • The export includes all the fields visible in your current dashboard view

This dashboard gives you complete control over document-transaction relationships, making it easy to maintain an accurate and well-documented cap table.


Common use cases for the Document Auditor

Setting up cap table and stakeholder holdings information

Uploading all your data to get started with Ledgy:

  1. Upload all available equity documents

  2. Use the auditor to quickly link documents to the right transactions

  3. Identify any transactions missing documentation

  4. Use the stakeholder filter to verify that documents belonging to one stakeholder aren't incorrectly linked to transactions of another stakeholder, which would cause incorrect document sharing.

Regular cap table maintenance

For ongoing cap table management:

  1. Review the "Potential Mismatch" category to spot inconsistencies

  2. Check "No Matching Transaction" to find documents that might need new transactions created

  3. Look at "No Matching Document" to identify transactions that need documentation

Pre-financing audit

Before a financing round:

  1. Use the auditor to ensure all equity transactions have proper documentation

  2. Check that stakeholder names match between documents and transactions

  3. Verify amounts and dates are consistent across your data

  4. Export the audit results for investor due diligence

Document types and transactions

Transaction-related document types that the auditor checks include:

  • Grants

  • Transfers

  • Share issuances

  • Equity settlements

  • Exercises

  • Convertible loans

Other document types like holding confirmations, board meeting minutes, and corporate governance documents will appear in the "Ignored" category as they don't relate to specific transactions.

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