Audit readiness - EY

1 CFOs and finance departments are under pressure. They are more involved in business strategy and planning than ever before, while, at the same time, shareholders and regulators are demanding more and more detailed information. This combination places high demands on the time and resources available to CFOs and their teams, making effectiveness and efficiency critical to success. Our multidisciplinary Audit readiness team can help you to plan and streamline the financial statement and Audit preparation process, allowing more time to address an ever-growing scope of Accounting Advisory ServicesAudit readiness :ensuring a smooth financial year-endThe fiscal year-end is stressful for most finance departments. An inadequate Audit preparation process can disrupt the finance function, put unnecessary pressure on employees and increase the risk of errors.

2 Audit readiness need not be a complex challenge. While many companies have difficulty completing Audit requests on schedule, our experience shows that, with the right approach, you can meet deadlines comfortably. Our Audit readiness team can help you optimize your year-end processes, freeing you and your team for other activities. We will assess your current methods, and help identify and implement improvements in the closing and reporting processes. We recommend incorporating Audit readiness into your finance calendar by breaking it down into three modules:1. Assessing the quality of the reporting process2. Prioritizing and streamlining closing activities 3. Preparing an Audit process and reporting reviewEY is one of the world s largest professional service organizations, delivering external Audit to thousands of clients worldwide.

3 You can benefit from this collective experience. Our professionals can help raise the quality of your processes, reduce the chance of delays, relieve the resource pressure at year-end, and help to ensure compliance. We can help you improve your Audit readiness procedures, to support your external Audit process completing on time without unwelcome surprises. The EY approach: three elements of Audit readinessElements of the financial statement close processDo you recognize these challenges in your company?Assessing the quality of the reporting processPreparing an Audit process and reporting reviewPrioritizing and streamlining closing activitiesIf you are aware of one or more of these issues, then our Audit readiness team can help you to boost the efficiency and effectiveness of your Audit preparation process: Is it difficult to meet deadlines in your year-end schedule?

4 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?PreclosingEntity closing processConsolidationReportingReviewData collectionAuditOur EY team will review your reporting process: Our methodology begins with a scan to evaluate your company s key finance (and, potentially, risk management) processes from four perspectives: Organization People Processes IT systems We compare the observations with your goals and industry best practice.

5 We then provide insights on areas requiring improvements, and work with you to develop Audit readiness focus points based on your help you to smooth out the closing and consolidation process, including: Reviewing tools and guidelines for example, the closing calendar, closing checklist, closing binder preparation and documentation, and standardized forms Designing and implementing an action plan, which prioritizes closing activities while establishing materiality in line with auditing standards Streamlining and reviewing activities covering, for instance, intercompany reconciliation, profit margin assessment, cost assessment, processing adjustments, pre-run of management information, explaining management information, a final review of figures and preparing financial statementsIn this phase, we help you to.

6 Manage project execution and support Audit readiness review management progress and initiate remediation actions review the prepared by client list from the auditor and compare it with the documentation prepared for the Audit review the preparation of technical memoranda based on IFRS or US GAAP Assist in the optimization and standardization of (electronic) closing binders Provide training to your finance team to retain knowledge in your organization Assessing the quality of the reporting processPrioritizing and streamlining the closing activitiesPreparing an Audit process and reporting reviewAuditYour key benefitsEY | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services.

7 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 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 About Financial Accounting Advisory Services The changing accounting and reporting landscape provides challenges for multi-national companies as they seek to respond to global market conditions and report on their financial results while facing increased scrutiny from a range of s accounting, regulatory, compliance and IT professionals combine technical expertise with business and industry insights to help clients navigate complexity.

8 Whether your focus is on managing highly technical accounting requirements or addressing governance and regulatory issues, having the right advisors on your side can make all the team uses proven and integrated methodologies to help you solve your challenging business problems, deliver accurate financial reports in complex market conditions and make improvements sustainable for the longer term. We understand that you need services that are adapted to your specific industry issues, so we bring our broad sector experience and deep subject matter knowledge to your projects in a proactive and objective way. 2015 EYGM Rights No. AU2030 SRE 0713-187140110ED NoneThis material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice.

9 Please refer to your advisors for specific Processes Identify possible bottlenecks early and smooth out the closing process Reduce Audit preparation time Meet tight reporting deadlinesCosts Realize potential cost savings and reduce overruns Avoid additional external auditor workResources Free up valuable internal resources Fill critical resource gaps Enable strategic resource deployment Prevent staff burnoutAccountingandcompliance Help to raise compliance with regulatory requirements Help to improve relationship with auditors Meet internal expectationsOverall 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 complianceContactinformatie Jan van der Windt + 31 88 407 4025 Jeroen Rikken +31 88 407 4974