Due Diligence Case Study
Due Diligence for a Company’s Personnel, Processes, & Systems
The client acquired a subsidiary and needed the new personnel, processes, and ERP systems reviewed.
Smith Schafer Approach
Smith Schafer reviewed the goals and concerns with two sets of management and corporate executives. We started by interviewing the finance staff and reviewing their respective accounting procedures and ERP systems to identify areas with improvement opportunities. Our experts identified areas in each company that were not in-sync with the other, creating extra time to close the monthly financial records, reporting inefficiencies, and additional hours worked.
Results
The investigative process, combined with industry best practices, allowed Smith Schafer to provide a comprehensive recommendation report to the Board of Directors. Recommendations included a thorough review of the finance staff, their strengths and weaknesses, and suggestions to improve their accounting procedures to ensure compliance with GAAP. Our review also included recommendations for ERP enhancement providing increased management reporting, reduce month-end close times, and increase the financial statements’ accuracy.
Related Posts
Tax Relief for American Families and Workers Act of 2024
On January 19, 2024 the House Ways and Means committee approved the Tax Relief for American Families and Workers Act of 2024.
Irs Issues Voluntary Disclosure Program For Employers to Pay Back Questionable Employee Retention Credits (ERC)
The IRS issued Announcement 2024-3 on December 21, 2023 to roll out the Voluntary Disclosure Program. The program is a process to pay back the ERC credit for recipients who believe they received it in error.
Understanding the Corporate Transparency Act
Effective from January 1, 2024, new and existing business entities (with exceptions) must comply with
the CTA