Expertise in Financial Reporting, Accounting, & Internal Controls
- Assigned two of our full-time consultants to the project;
- Identified errors and irregularities in previously filed financial statements at the general ledger account level;
- Determined correcting journal entries for each impacted period;
- Developed and maintained a database inclusive of all correcting entries by period and by department to upload into the client's accounting system;
- Prepared adjusted financial statements;
- Interfaced directly with the company's audit team to explain the findings and adjustments and address their substantive audit inquiries;
- Drafted footnotes and financial statement disclosures for the restated documents; and,
- Compiled comprehensive support binders to substantiate the disclosures in each filing, ensuring accuracy and consistency.
Issue - Our client engaged us after a formal SEC inquiry which had resulted in the requirement that the company restate five years of previously filed financial statements. Subsequent to the investigation, key roles in the accounting and financial reporting groups had been vacated and the company did not have the staff required to complete the restatement. Rivers & Moorehead was one of a number firms engaged to assist the company with its complete restatement of 5 years of annual results and 2 years of quarterly results. After completing the restatement we were retained to assist the company with preparing its past-due financial statements, none of which had been filed during the year-long restatement period.
Actions -
Outcome - We were able to help our client to achieve SEC reporting compliance by assisting with their restatement and delinquent filings. With our assistance, the restated financial statements were in compliance with U.S. generally accepted accounting principles and our client obtained a clean audit opinion on their financial statements and results of operations.
