Financial Accounting Advisory Services - EYFile/EMEIA_FAAS_Audit_Readiness_presenta… · Financial Accounting Advisory Services . Audit readiness: ensuring a smooth financial year

Financial Accounting Advisory Services Audit readiness: ensuring a smooth financial year-end October 2013

Audit readiness Page 2

Agenda

Audit readiness 3

About EY 13

Contacts 15


Audit readiness


Issues CFOs face regarding financial statement preparation

► Meeting the increased scrutiny by regulators

► Juggling growing internal expectations and communication requirements Audit readiness

can free up valuable time for the finance team

to focus on other priorities on the CFO’s

agenda.

► Proactively offering valuable commercial insights

► Increasing complexity of accounting topics

► Addressing the growing number of reviews and audits

► Increasing pressure on resources


Financial accounting preparation Self-assessment

Question Self assessment

Often Sometimes Never

Is it difficult to meet deadlines in your year-end schedule? � � �

Do you have enough staff for audit preparation, without neglecting other important finance and business tasks? � � �

Does your auditor require additional work or fees during the audit because issues arise with the supporting documents you provide? � � �

Does your team tend to make more errors when working under high pressure? � � �

Does your auditor propose audit adjustments as a result of calculation errors in preparation? � � �

Are you fully prepared for the audit, with the required documents in place on time? � � �

Do you have an automated project management system for creating your accounts? � � �

Do your stakeholders ask for financial information earlier than you can deliver it? � � �

Do you recognize these challenges in your company?

Our audit readiness service can help you to boost the efficiency and effectiveness of your audit preparation process.


Three elements of audit readiness Tasks of the financial department

Prioritizing and streamlining closing activities

Audi

t

Assessing the quality of the reporting process

Preparation an audit process and reporting review

Elements of the financial statement close process

Data collection Preclosing Entity closing process Consolidation Review Reporting

Audi

t


Assessing the quality of the reporting process Reporting process quick scan

Evaluation

Evaluation of the company’s key finance (and, potentially, risk management) processes from four perspectives:

Methodology

Findings

Organization People Processes IT systems

► Comparing the results to your goals and industry best practice ► Providing insights on areas requiring improvements, and work with you to develop audit readiness focus points

based on your priorities.

Scan of reporting process tailored to your specific situation


Assessing the quality of the reporting process Steps of the reporting process quick scan

The EY team develops a tailored questionnaire for assessment based on working papers, and gathers points that require specific attention from group and business

controllers for the interviews.

The EY team briefs local management, aligns planning to other projects and to the audit planning, and provides a detailed questionnaire.

Management submits responses to EY.

The EY team completes the analyses of responses (result of step 3) and prepares key topics for interview

sessions (if needed).

1. Preparations

2. EY briefing sessions and submission of questionnaires

3. Completion of questionnaires by company

4. Analysis of responses and interview sessions

5. Analysis of interview findings and presentation of findings

The EY team completes the analyses of the survey and the findings of the interview sessions and presents a report of the

findings, including a heat map of suggested improvements for the CFO and finance team.

Man

agem

ent

invo

lvem

ent


Prioritizing and streamlining the closing process Identifying bottlenecks and creating action plans

► Closing calendar ► Closing checklist ► Closing binder preparation

and documentation ► Standardized forms

► Design and implementation of an action plan

► Prioritization of closing activities

► Establishing materiality in line with auditing standards

► Intercompany reconciliation

► Profit margin assessment ► Cost assessment ► Processing adjustments ► Pre-run of management

information ► Explaining management

information ► Final review of figures ► Preparation of financial

statements

Reviewing tools and guidelines Designing and implementing action plan

Streamlining and review of activities


Preparing an audit process and reporting review

Preparing an audit process and reporting

review

Manage project execution and support

audit readiness

Review the “prepared by client list” from the auditor and compare it with the documentation prepared

for the audit

Provide training to your finance team to retain knowledge in your organization

Review the preparation of technical memoranda

based on IFRS or US GAAP

Review the management progress and initiate remediation

actions

Assist in the optimization and

standardization of (electronic) closing

binders


EY’s support for your financial accounting preparation process

We assist our clients with every aspect of the financial accounting preparation process. We can help you to: ► Assess the quality of the reporting process ► Prioritize and streamline closing activities ► Prepare the audit process and review the reporting Our multidisciplinary team will help you further improve your reporting processes and the quality of your financial information.

Assess

Financial accounting preparation process

Prioritize Improve

Streamline Review


Your key benefits

Processes ► Identify possible bottlenecks early and smooth out the closing process ► Reduce audit preparation time ► Meet tight reporting deadlines

Costs ► Realize potential cost savings and reduce overruns ► Avoid additional external auditor work

Accounting and compliance

► Help to raise compliance with regulatory requirements ► Help to improve relationship with auditors ► Meet internal expectations

Overall ► Help to raise stakeholders’ confidence in the audit process ► Reduce the risk of delays and stress on your organization during the audit ► Help you to ensure compliance

Resources ► Free up valuable internal resources ► Fill critical resource gaps ► Enable strategic resource deployment ► Prevent staff burnout


About EY


Your regional EY network

Africa Angola, Botswana, Republic of Congo, Equatorial Guinea, Ethiopia, Gabon, Ghana, Guinea, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Seychelles, South Africa, Tanzania, Uganda, Zambia, Zimbabwe

Belgium and Netherlands

Germany, Switzerland and Austria

Commonwealth of Independent States Azerbaijan, Belarus, Georgia, Kazakhstan, Russia, Ukraine, Uzbekistan

Central and Southeast Europe Albania, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, FYR of Macedonia, Malta, Moldova, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey

France, Maghreb and Luxembourg France, Luxembourg, Algeria, Morocco, Tunisia

Financial Services Organizations Belgium, Channel Islands, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Switzerland, UK

India

London

Mediterranean Italy, Portugal, Spain

Middle East and North Africa Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Pakistan, Palestinian Authority, Qatar, Saudi Arabia, Syria, United Arab Emirates

Nordics Denmark, Finland, Norway, Iceland, Sweden

United Kingdom and Ireland UK, Isle of Man, Republic of Ireland

EY Global

Countries worldwide 140

Employees worldwide 167,000

US$ revenue (2011–12)

24.4b


Financial Accounting Advisory Services contacts – EMEIA

Hanneke Overbeek-Goeseije Audit readiness [email protected] + 31 88 407 11 25


EY | Assurance | Tax | Transactions | Advisory About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.. © 2013 EYGM Limited. All Rights Reserved. EYG no. AU2031

ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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Financial Accounting Advisory Services - EYFile/EMEIA_FAAS_Audit_Readiness_presenta… · Financial Accounting Advisory Services . Audit readiness: ensuring a smooth financial year