Financial reporting advisory helps an organisation resolve reporting issues and prepare consistent statements, schedules and disclosures.
Understanding Financial Reporting Advisory
When to consider this service
Creditors, business owners and authorised transaction teams reviewing distress, unpaid claims or a formal process can use this service to clarify a particular issue. A useful starting question is: “Who remains responsible for the prepared financial statements?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Review reporting framework and accounting issues.
- Develop close and disclosure working papers.
- Coordinate management and auditor review points.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- Trial balances.
- Accounting policies.
- Agreements.
- Previous statements.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
Advisory preparation does not transfer responsibility for management’s financial statements or the independent auditor’s opinion.
How the engagement works
- Define the question: review reporting framework and accounting issues, using the available trial balances and the facts you provide.
- Examine the evidence: develop close and disclosure working papers. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: coordinate management and auditor review points. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for Financial Reporting Advisory sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of trial balances, accounting policies, agreements and previous statements affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Official resources
Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.
Discuss your requirement
Share a short summary of your Financial Reporting Advisory requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about Financial Reporting Advisory.
Who remains responsible for the prepared financial statements?
Advisory preparation does not transfer responsibility for management’s financial statements or the independent auditor’s opinion.
What records should I prepare for Financial Reporting Advisory?
What can the scope of Financial Reporting Advisory include?
How are fees and the schedule agreed?