Amy Langfelder

CPA | CK Principal

In a world where resources are stretched thin and regulatory compliance is more demanding than ever, many organizations are asking the same question: How can we effectively plan for and manage our external financial statement audits? 

The answer for many is to leverage outsourced support, particularly through Client Accounting Advisory Services (CAAS). If you’re skeptical about how an external team can integrate with your team’s processes, you’re not alone. But with the right support, you can significantly reduce the workload on your team, meet deadlines and stay in compliance, without sacrificing accuracy or transparency. Here’s how CAAS can help you simplify and strengthen your external audit process.

Why Work with a CAAS Team?

Many firms have dedicated teams specializing in client accounting and advisory services (CAAS or CAS).  These teams are experts in audits, financial reporting and compliance.  When you engage a CAAS team, you gain access to seasoned professionals who can assist your in-house accounting functions in planning for the year-end financial statement audit without disrupting your day-to-day operations. Here are several key areas where CAAS support can make a real difference:

• Compliance Review of Key Agreements
  CAAS professionals can review key agreements and help you identify significant compliance terms and ensure you’re meeting your obligations. For example, does a loan agreement require certain debt coverage ratios? Has the organization calculated and documented these ratios throughout the year to determine compliance? If you are not in compliance, the CAAS team can help you navigate options, such as requesting waivers or adjusting strategies to meet the terms.

• Internal Control Documentation and Walkthroughs
  In an age of enhanced technological advancements and accounting processes, your internal controls should be reviewed and updated annually. CAAS teams can:
  • Review and revise your internal control documentation.
  • Conduct walkthroughs to test controls.
  • Identify potential issues before your auditors do.

• Preparation of Audit Workpapers
  Preparing audit workpapers can be time-consuming. CAAS teams are trained to:
  • Prepare, organize and assemble audit documentation such as work papers.
  • Ensure documentation meets auditor expectations.
  • Reduce questions and additional scrutiny from external auditors by addressing their key concerns upfront.
    This gives your internal staff more time to focus on daily operations while reducing the stress of the audit.

• Disclosure Support for Financial Statements 
  Disclosure requirements are consistently changing and are more complex than ever CAAS teams can assist by:
  • Gathering and organizing the required data.
  • Drafting detailed disclosures.
  • Ensuring your financial statement disclosures align with the latest regulatory expectations.

• Implementation of New Accounting Standards
  Whether it’s a new FASB or AICPA standard, adapting to change can be difficult. CAAS experts can:
  • Guide you through the new requirements.
  • Provide templates and implementation guides.
  • Ensure a smooth transition with full compliance.

Plan Smarter, Not Harder

Planning for your next external audit doesn’t have to be stressful or overwhelming. If you consider the topics discussed above and look to outsource some of these tasks to professionals who can guide you through the process, you will be able to save time and resources for your internal team. 

Let CK’s CAAS team help. We offer tailored solutions to support your audit readiness and financial transparency. Reach out today to learn how our experts can help your organization move through the audit process with ease.