Case Study

Case Study: Federal department facing external audit improves internal controls, financial processes

Challenge:

The client faced an audit of its agency's financial statements and required a comprehensive analysis of fund balance with treasury, accounts receivables, statement of budgetary resources, and compliance with laws and regulations.

Delivery:

  • Assessed control environment, account balances, and processes associated with financial accounts.
  • Provided subject matter expertise in evaluating controls over accounts receivable, fund balance with treasury, and statement of budgetary resources, as well as compliance with laws and regulations.
  • Utilized software to conduct sampling tests of general and application-level controls, obtained related documentation/evidence, performed testing in place to comply with applicable laws and regulations, and produced Notice of Finding and Recommendation documenting testing and analysis results.
  • Produced account risk analysis and specific control evaluation to document the understanding gained through internal control tests.

Impact:

  • Improved internal controls and business processes associated with the accuracy and valuation of in-scope financial accounts under audit.
  • Realized significant cost savings through use of modern statistical methods to assess the rights, ownership, and valuation of financial accounts.