Timeline Keeps the process organized Lets look at the sample - - PowerPoint PPT Presentation

Timeline

■ Keeps the process organized ■ Sets expectations for everyone ■ Can hold individuals accountable if they do not meet the deadlines that they agreed to ■ Let’s look at the sample that I put in the course documents

Preparing the Timeline – Internal Parties

Audit Committee (AC) meeting date must be set (date agreed on by AC, CFO, internal audit if applicable and Outside Auditor) Agree on filing date with investor relations Agree on general ledger (GL) close date with GL team Agree dates with VP/Controller and CFO if necessary Agree dates with internal audit

Preparing the Timeline – External Parties

Send key dates to the outside counsel and inside counsel Send draft timeline to outside auditors and get their agreement Send key dates to XBRL team Send draft timeline to tax team and get their agreement Declare timeline final, and distribute to the necessary parties

Timeline – Tips and Tricks

■ For most of the parties involved, be reasonable with their key dates, and listen to them if they say that a date doesn’t work. ■ Send emails to parties a day or two before their key dates to make sure that they are on track to provide the deliverable. ■ With certain individuals, you will need to do some hand holding. That’s just the way it works. Don’t take it personally. ■ Make your own notes on he timeline as you progress through the close to see what dates were met or not met, and adjust your process or timeline for next quarter.

Review question #1 (Required for CPE)

Which internal group does the SEC Reporting Manager NOT need to coordinate the reporting timeline with? A. Investor Relations B. External Counsel C. The Independent Auditors D. The Payroll Department

Review question #1 (Required for CPE)

A. Investor Relations must agree on the filing date. (Incorrect) B. External Counsel must be informed

• f the time that the 10Q or 10K draft

will be ready for their review, and when they will need to provide their comments back by. (Incorrect) C. It is critical that the SEC Reporting Manager Coordinate with the external auditors on most of the dates within the timeline. (Incorrect) D. D. The P he Payroll ll D Depa epartment will ll ha have minimal al i involvement i in t the SEC C Reporting g Process. ( . (Co Correct)

Which internal group does the SEC Reporting Manager NOT need to coordinate the reporting timeline with? A. Investor Relations B. External Counsel C. The Independent Auditors D. D. The Pa Payroll D Department

Review question #2 (Required for CPE)

(Fill in the Blank.) When preparing the timeline, the SEC Reporting Manager should start with the __________ and word backwards. A. date the auditors will start fieldwork B. date that the 10Q/10K draft needs to be provided to the auditors C. Audit Committee meeting date D. the date that the General Ledger is closed

Review question #2 (Required for CPE)

(Fill in the Blank.) When preparing the timeline, the SEC Reporting Manager should start with the __________ and word backwards. A. date the auditors will start fieldwork B. date that the 10Q/10K draft needs to be provided to the auditors C. C. Audit Commi mmittee ee mee eeting g date D. the date that the General Ledger is closed

A. this date is near the beginning of your SEC reporting cycle (Incorrect) B. While this date is important, is not the starting point for working

• backwards. (Incorrect)

C. C. This is is is the key da date that driv drives m mos

• st
• f
• f the o
• ther da

dates. After this is da date is is set, t , the S SEC EC R Reporting g Man anage ger can can work rk b backw kwards ds t to d determin ine t the

• ther k

key dates. ( . (Co Correct) D. The general Ledger close date is one

• f the first dates in the process, and

is this too early to work backwards

• from. (Incorrect)

Tie Out Binder

■ Cover Page and Spine

Review question #3 (Required for CPE)

(Fill in the Blank.) The SEC Reporting Manager prepares the tie out binder because __________. A. it is explicitly required by the SEC B. the CEO must review it C. the auditors require a hard copy of the tie out binder D. the Company’s internal controls will generally require that the Company prepare a tie out binder.

Review question #3 (Required for CPE)

(Fill in the Blank.) The SEC Reporting Manager prepares the tie out binder because __________. A. it is explicitly required by the SEC B. the CEO must review it C. the auditors require a hard copy of the tie out binder D. D. the Company’s in internal al controls will ill generally ly require that t the Compan any prepare a a tie o

• ut bin

inder.

A. The SEC does not have specific regulations regarding a company’s tie out binder. (Incorrect) B. It is very uncommon that the CEO would review the tie out binder. (Incorrect) C. Audit firms will need to see the tie out support for the numbers in the 10Q/10K, but generally soft copies of the support is acceptable, and preferable in some cases. (Incorrect) D. D. The ma management of

• f SEC registered

compa panies m mus ust maintain i internal c cont ntrols. It is common pr n practice for i internal cont ntrols t to require a a tie ou

• ut binder that receives som
• me

form o

• f a

appr

• pproval. (

(Co Correct)

Rolling Forward

Period that we are rolling into Document to roll from Additional Comments Q1-19 (10Q) Q3-18 (10Q) If you disclose risk factors each quarter, copy and paste the risk factors from the 2018 (10K). Run a compare of the entire 2018 (10K) to the 2017 (10K), see what changed, and update the Q1-19 (10Q) as needed. Q2-19 (10Q) Q1-19 (10Q) Add year to date to income statement, footnote disclosures of expense/revenue amounts, and results of operations explanations in MD&A. Q3-19 (10Q) Q2-19 (10Q) Structure of document is unchanged, just need to roll forward dates. Q4-19 (10K) Q4-18 (10K) If you disclose risk factors each quarter, copy and paste the risk factors from the Q3-19 (10Q). Run a compare of the entire Q3-19 (10Q) to the Q3-18 (10Q), see what changed, and update the (10K) as needed.

Review question #4 (Required for CPE)

Which of the following roll-forwards is typically the leas ast time consuming? A. Q4-2020 to Q1-2021 B. Q1-2021 to Q2-2021 C. Q2-2021 to Q3-2021 D. Q3-2021 to Q4-2021

Review question #4 (Required for CPE)

A. This roll-forward is more challenging as it is difficult to roll-forward a 10Q from a 10K, and extra steps are involved. (Incorrect) B. This roll-forward is the second easiest roll- forward, and is only slightly more difficult than option C because. (Incorrect) C. C. Thi his i is the the easiest o

• f the

the roll-fo forwards a as

• n
• nly t

the d dates need t to

• be upd

pdated with no new s section

• ns

s needed. ( (Corre rrect) D. This roll-forward is more challenging as it is more difficult to roll-forward a 10K from a 10Q. (Incorrect)

Which of the following roll-forwards is typically the leas ast time consuming? A. Q4-2020 to Q1-2021 B. Q1-2021 to Q2-2021 C. C. Q2 Q2-2021 to Q3-2021 D. Q3-2021 to Q4-2021

Summary

■ Timeline ■ Tie out binder ■ Rolling forward the financial statements

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