Treasury and FP&A teams have long been on the periphery of the annual audit process. But times are changing, and teams are being pulled deeper into the audit.
As more audits fail, audit firms are seeing increased scrutiny from the PCAOB and SEC. Additional pressure on auditors means additional pressure on clients—much of it falling on treasury and FP&A teams.
What is the cause of these failures? Even when companies have well-designed, effective controls, they often don’t have the necessary evidence to give auditors in a readily accessible and usable form. Auditors have been unable to collect, organize, and present necessary evidence because those preparing projections or performing internal controls did not create it at the start. The documentation that has been produced is too vague and does not describe what the company’s managers and decision makers did.
The bottom line is this—in order for treasury and FP&A teams to weather this audit environment, they need to strengthen their documentation.
Read the white paper, FP&A—The Brave New World of Internal Control, to find out how the treasury and FP&A functions are being pulled deeper into the audit, why it matters, what could go wrong, and what teams need to do to prepare.