In working closely with auditors is a wide spectrum of firms over the past years, we have developed a proprietary reporting package that focuses on accuracy and ease of review by incorporating the following features:
Audit-centric Tax Provision Model
Thorough and well-organized tax provision model including the following key features to facilitate the audit process:
1) Interactive table of contents linked to workpaper support;
2) Executive summary detailing facts and assumptions, rationale for conclusions, and flux analyses;
3) Comprehensive procedure checklist referenced to support and ensure workpaper completeness;
4) Diagnostics schedule providing analytic comparison of key figures;
5) Customized referencing system reflecting audit requirements (e.g., internal controls, preparer notations, mathematical formulae);
6) Proofs and reconciliations throughout to validate data and ensure computational accuracy.
Memorandum
A detailed and comprehensive memorandum is prepared at the end of each financial reporting period to meet internal control requirements as well as provide detailed analyses of critical aspects of the tax provision, generally analysis of current period tax provision, effective tax rate, deferred inventory, ASC 740-10 accounting for uncertainties, stock based compensation, and movement in tax accounts.
Communication
Communication with the audit team is consistent throughout the financial reporting period from a kickoff meeting at the beginning focused on key issues impacting the period to ongoing collaboration during the tax provision preparation process to final review of the reporting package and internal control signoff. A slide deck capturing the tax provision highlights is provided at the final audit discussion, which can be reviewed in 5 to 10 minutes.
