Before DLC

• Critical staffing gap due to the resignation of the Senior SEC Compliance Accountant. 
• Risk of missing compliance deadlines for Q3 10Q and Earnings Report (8K). 
• Limited resources to update and review workpapers in preparation for filing. 
• Logistical challenges in coordinating with remote team members and external auditors. 

After DLC

• On-time filing of the Q3 10Q, meeting all SEC compliance deadlines. 
• Accurate and updated workpapers aligned with previous reporting periods. 
• Seamless collaboration across remote and in-office teams, ensuring smooth workflow. 
• Strengthened trust and partnership, leading to a planned return for 10K support in 2025. 

Project Overview

A publicly traded domestic and international clothing retailer with an annual revenue of $2.8 billion faced a critical need to file their Q3 10Q earnings report on time amidst the resignation of their Senior SEC Compliance Accountant. This sudden staffing gap threatened their ability to meet compliance deadlines and maintain investor confidence. 

DLC was engaged to provide specialized expertise and support for their SEC compliance efforts. With a proven track record of assisting the client in previous reporting periods, the client was confident in our ability to ensure the timely and accurate completion of the filing. 

Business Challenge

The resignation of the client’s Senior SEC Compliance Accountant during the preparation of their 10Q created a significant challenge for the company. The absence of key personnel left the finance team understaffed and jeopardized the timely filing of their 10Q and Earnings Report (8K). 

Compounding the challenge was the need to coordinate efforts across a remote team, with external auditors requiring timely access to workpapers. Although DLC had previously assisted the client, this engagement introduced new logistical hurdles, including obtaining access to the external auditor’s portal for workpaper uploads. 

Approach

After onboarding quickly to ensure efficiency and continuity, our team identified that the client needed to update existing workpaper templates for Q3 financial data while maintaining strict adherence to SEC reporting standards. 

To achieve this, we provided the following solutions: 

1. Onboarding and Familiarization: The outgoing staff member provided a walkthrough of prior period footnotes and expectations for the current filing. 
2. Workpaper Updates: Using established templates, DLC consultants updated the workpapers to reflect Q3’s quarter-end and year-to-date data. Any inconsistencies were flagged and addressed in collaboration with the client team. 
3. Collaboration and Quality Review: Our team worked closely with the client’s remote team, commuting to their downtown office weekly while maintaining seamless communication to address questions and provide additional support. 
4. Technology Integration: The project leveraged Workiva cloud software for filing preparation and Excel for supporting workpapers. Workpapers were shared with the client’s external auditors through their portal, ensuring compliance and thorough review. 

Results

DLC successfully supported the client in filing their Q3 10Q on time, meeting all compliance deadlines and maintaining investor confidence. The consultant’s familiarity with the client’s processes and systems enabled a smooth and efficient engagement, providing the client with the following benefits: 

• Timely completion of the 10Q filing by December 6, 2024. 

• Seamless collaboration across a geographically dispersed team. 

• Strengthened client trust, leading to a request for future support during their 10K filing. 

The client continues to rely on DLC to address team gaps and provide support for their 10K filing. While they work to fill a critical role, DLC remains a trusted partner for their compliance and reporting needs.