Case Study – Preparing US GAAP Financial Statements for Review and Audit

Industry: Financial Services
Type of Service: Pre-audit

Issue

CFO Consulting Partners was engaged by a start up FinTech Company to assist in the preparation of US GAAP financial statements for a Review and eventual audit. The Company is a pioneer in its industry and needed the Review report to be included in its application for regulatory approval. The Company also needed CFO CP to prepare an accounting policy and procedures manual.

What We Did

CFO CP assisted in getting the Company ready for the Review and eventual audit. CFO CP reviewed the trial balance, general ledger from date of inception to the Review period and all the underlying accounting records for propriety and accuracy/completeness. CFO CP ensured that all the Prepared-By-Client (PBCc) were accurate and reflected the transactions that transpired during the period and also ensured that the PBCs were such that they each had an audit trail. In certain instances, CFO CP prepared the relevant schedules/analyses for some account balances. Since the client is a start-up, CFO CP prepared the financial statements from date of inception to the relevant period end, together with detailed footnotes for the auditors’ review. CFO CP liaised with the auditors throughout the duration of fieldwork and assisted in resolving Review issues with the auditors.

CFO CP delivered a complete accounting policy and procedures manual, which serves as both a key tool necessary to maintain the books and records of the Company on a consistent basis, and also provided accounting policy documentation for the Company’s auditors and regulators. The procedures manual is the roadmap necessary for maintenance of the books and records of the Company and for the preparation of its consolidated financial statements.

Outcome

The auditors completed the Review process and issued their Review report within five (5) business days and consequently, the financial statements and footnotes required for regulatory approval were filed on time. As a result of CFO CP’s involvement, the books and records had clear Review trail and the Company had a chart of accounts that is specifically designed for its business. Also, all the significant accounting policies and internal controls were well documented. CFO CP was well commended by the Company’s CFO and management for exceptional work. CFO CP also received commendations from the Company’s CPA firm.