Reconciliation To Catch Up On Various Financial Statements Leads To Successful Audit
Requirement: Loan Staff Augmentation
Business Scenario / Situation:
The client is a privately held telecom management company in Rochester, NY. The client had a vision to create the number two company in telecom expense management. To help achieve this vision, the client acquired three prominent telecom companies. As each of these companies used various systems to record journal entries and to obtain financial statements, it was necessary to implement one primary accounting software. The client eventually implemented NetSuite as their primary accounting software; however they were very behind and in need of a strong team to come in and reconcile the various financial statements so they could complete their audit.
ProNexus Solution (How We Helped):
ProNexus was engaged by the client to provide Loan Staff Augmentation, assigning two Senior Accountants to perform Audit Readiness. This involved pulling together a view of all accounts by each acquired company in their original systems and reconciling these against the designated mapped accounts in the General Ledger System that was to be used going forward. ProNexus also compiled information to complete the purchase accounting treatment for the previous two years. ProNexus reconciled all accounts which occasionally required re-creating support documentation from the available data, and prepped audit-ready documents for the previous two years. In addition, ProNexus made itself available to provide additional support and guidance to the client’s in-house auditors.
Through our reconciliation of the client’s various financial statements, ProNexus discovered the lack of support existing for the accounting in the previous year due to staffing changes and moved or changed operations. Due to this discovery, the client requested that ProNexus extend our engagement for an additional 4-6 weeks, in order to finish reconciling all of the accounts through December of the previous year. Once the financial records were updated and reflected the purchase accounting treatments chosen, the client was ready for their previous year audit.