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Post-mortem for virtual close
Accounting and reporting impacts• What were the technical accounting
or disclosure impacts of the current crisis?How might they change in future periods?
• Which elements of the financial statementsdid we need to have increased focus on, forexample, receivables or MD&A?
• Was there adequate time and informationallowed for management reviews atall levels?
• Where do we feel there is more limitedtransparency into the results andunderlying drivers?
• Were there any new focus areas forthe external audit this period or placeswhere the auditors spent additional time?
Timeline
• What were the visible or hidden impacts toour timeline, even if we managed to workaround them?
• How did our close and reporting KPIscompare to prior periods? What does thistell us about the close?
• What new items came onto the criticalclosing path this past close?
• Should we adjust the timeline orexpectations for future periods?
Close and task management
• How well were we able to centrally manageand control the close and reporting tasks?
• Were there any changes to the nature orextent of our journal entries compared toprior periods?
• Which closing tasks were difficult to performremotely and what were the reasons for thedifficulty?
• Which tasks were completed late and whatwere the reasons?
• Do we need to shift tasks betweenindividuals to meet the closing timetable?Does working virtually provideopportunities to redistribute?
• Do we need to rework or reorder ourclosing tasks? Are there tasks we shouldexecute during the month?
• Are there tasks we are performing that aresimply not material to our reporting?
Governance and compliance
• Were we able to execute our standardcontrols effectively remotely?
• Are there additional risks introduced in theprocess that we need to better manage?
• Are there computer-based controls that weneed to consider redesigning?
• Were there adjustments that wehad to make to our segregation of duties orapprovals?
• Are there any new controls that we shouldconsider implementing against higher riskitems?
Resourcing
• Are we tracking individuals’ workloads tounderstand who was overloaded andwhere capacity might exist?
• Is there additional training we need toprovide to equip our people for a remoteclose?
• Do we need to consider additionalresources to manage spikes in workloadsduring the monthly or quarterly close?
• Should we reorganize roles and/or tasks tobetter group them (e.g., financial line item)and promote clear ownership?
The illustrative self-assessment questions below are designed to help facilitate a post-mortem review and critical analysis of the close and external financial reporting process. The questions have been updated to reflect the current environment of needing to close the books at a distance. Use this tool to help 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.
Technology enablement
• Does everyone have the appropriate hardware to be able to work remotely with appropriate IT support levels?
• Does everyone have the needed software (e.g., collaboration tools, documentation management) to work remotely?
• Did we have any system access or performance issues that we needto address?
• Are people able to access required documents to support accurate accounting going forward?
• Are there tools that we should consider to better automate elements of the remote close and reporting processes?
Remote working
• What elements of the work were thehardest to execute remotely?
• How has the pattern of work changed, forexample, between executing tasks, directinteractions and meetings? Do we need torebalance?
• What collaboration tools are we using?Can we upgrade our use of these tools?
• Recognizing that everyone’s home situation is different, where can we provide additional support or be more flexible?
• Were there particular countries, businessunits, shared service centers, or third-partyoutsourcers who struggled to workremotely?
• How was the interaction with other non-accounting functions? Any areas forimprovement?
Summary• Do we believe that there is adequate
documentation behind aspects ofthe close or do we need to enhance certainareas?
• Are there tasks performed, information orreports produced that were highlighted tobe of limited value?
• Should we consider a different balancebetween soft and hard closes for monthlyversus quarterly reporting?
• What were the bright spots that we shouldhighlight or learn from?
• Any other areas for future improvements?
Contacts
Beth KaplanCenter for Controllership Director Managing Director Deloitte & Touche LLP [email protected] +1 714 724 5282
Kyle CheneyCenter for Controllership program advisor Partner Deloitte & Touche LLP [email protected] +1 216 589 1387
David CutbillCenter for Controllership Eminence & Marketing leader Principal Deloitte & Touche LLP [email protected] +1 213 364 9232
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