Client

A global company with revenue streams from multiple sources

Challenge

Global revenue assurance, order entry and fulfillment, and sales teams struggled with the SAB 104 requirements of reasonable assurance of accurate and timely revenue recognition. Specifically, the greatest challenge stemmed from the substantive testing during financial audits. This significantly impacted the cost of compliance and delayed the reporting of issues to management.

Solution

  • Leveraged a global team with extensive experience in revenue recognition and SAB 104.
  • Accessed various applications and platforms used by the client teams across functions while creating the solution.
  • Assessed the client’s existing process, mapped an end state that better aligned to SAB 104 requirements and project managed the implementation of best practices.
  • Performed substantive testing in collaboration with the client’s internal controls and compliance functions.
  • Identified high impact audit findings and improved its focus towards root cause analysis and remediation
  • Monitored risks and impact over financial reporting.
  • Tracked audit status, including remediation and closure, through dashboard reporting for the financial auditor and external auditors.

Results

  • 33% year-on-year reduction in compliance costs for the company
  • 25+ issues remediated in the past five years
  • Supported the management in substantively testing ~500 revenue transactions, and ~300 revenue transactions for annual cut-off review procedures
  • Enhanced compliance program, including improved accountability across multiple organizations within the company
  • Provided accurate and timely reporting to client senior management, ensuring adequate time to remediate issues prior to financial audit completion
     

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