Accounting and reporting

• Do we need to update disclosures related to new debt arrangements initiated in the current period?

• Are there any potential breaches of financial covenants, material adverse changes, and/or cross-default triggers that may impact access to core funding and liquidity?

• Are there any updates required to account for and disclose hedging relationships as part of ASU 2017-12?

• Do we need to make any modifications to accommodate for cash shortages across intercompany arrangements?

• Is there a need to make any credit rating disclosures as a result of increased capital injections by the central banks?

• Were there any known instances that could significantly affect the organization’s ability to apply hedge accounting due to the impact of earnings?

• Are there better ways to optimize cash transfers, including cross-border flows, notwithstanding tax and accounting implications?

Internal controls

• Have we distinguished key and nonkey treasury control processes to address associated risk factors?

• Are there any treasury control-related deficiencies identified that need to be properly remediated?

• Are there any new treasury controls that should be considered to address identified elevated risk items?

• Do we have proper segregation of treasury information technology general controls (ITGC) and application controls (ITAC) to ensure the business and IT bifurcate the appropriate roles and responsibilities?

• Are there any redesign opportunities? Are there computer-based controls that we need to consider redesigning?

The illustrative self-assessment questions below are designed to help identify the important alliance among the controllership and treasury functions during the close process. This guide illustrates three critical business process areas that reflect how treasury and controllership functions can work together to take a strategic approach to manage increasingly complex risks in order to sharpen their company’s competitive edge. The questions below help reflect the current environment. Use this tool as a guide to help you assess what worked and what didn’t, identify ways to improve the next virtual close, and gather insights into processes to better thrive with a remote workforce.

Closing checklist –Controllership and treasury alliance

Business operations

• Are there opportunities to bolster working capital needs through better receivables or payables management?

• Do we believe our treasury business process flows align with the current operating environment?

• Are there any redesign opportunities across business processes to simplify transaction execution and recording?

• Are we leveraging automation tools to reconcile cash and book balances?

• How can we better centralize cash visibility and control and have data readily available to better manage liquidity decision-making?

• What new automated tools are in place to clear cash forecasting reconciling items timelier?

• Are there ways to shift forecasting models to scenarios to address changes in demand during the current or any future crisis?

• Should we consider digital transformation opportunities across treasury and controllership to better promote the virtualization of work and continued use?

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Carina Ruiz Partner Deloitte & Touche LLP caruiz@deloitte.com +1 408 704 2158

Mark Nettles Senior Consultant Deloitte & Touche LLP mnettles@deloitte.com +1 414 207 1070

Neha Verma Manager Deloitte & Touche LLP nehaverma4@deloitte.com +1 214 840 1915

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