Before DLC

• Audit deficiency 
• Accounting issues stemming from lack of in-house expertise & resources 
• Issues completing key report testing ahead of SEC filing 
• No structured processes for monthly or quarterly closes

After DLC

• More real-time visibility 
• Accuracy and reliability of key reports 
• Successful SEC filing 

Overview

The client – an American manufacturing company – engaged DLC to identify and test key reports used in their internal control framework after experiencing an audit deficiency. 

DLC was chosen by the client due to our proven ability to develop internal control frameworks and fill vacant positions quickly and effectively. 

Challenge

DLC was initially brought on to support the client with key report testing for an upcoming SEC filing. However, during initial months, the client experienced a period of rapid staff turnover. This resulted in a lack of in-house resources and expertise, accounting errors, and a heightened need to evaluate the effectiveness of their information management systems. 

These issues impeded the client’s ability to complete monthly and quarterly close activities in a timely manner while also progressing with the review of key reports needed to develop a reliable internal control framework. 

Approach

To mitigate the client’s accounting issues, the DLC team worked closely with client management teams to define areas of responsibility and ensure all accounting work (including analysis, journal entries, reconciliations, and more) was supervised, reviewed, and documented to ensure a seamless transfer of knowledge to existing staff. 

After correcting the accounting issues, our team returned to key report testing. First, we determined how client staff utilized these documents to ensure proper procedures were being followed. Afterwards, we matched this information to data within the client’s financial system to ensure accuracy and reliability. 

Results

The client now has more real-time visibility into monthly close activities, reliability and accuracy for key reports, a stronger accounting function, and a successfully completed SEC filing. 

DLC continues to support the client with SEC reporting and general coordination.