 |
Case Studies
Remediation of Material Weakness of Internal Controls Achieved through TJG Recommended Enhanced Key Accounting Policies and Processes
Challenge:
A multi-billion dollar telecommunications company reported a material weakness in internal controls due to insufficient staffing, experience level, and training necessary to properly analyze, proceduralize, and apply GAAP accounting principles to the company’s complex operations and transactions. The control deficiency contributed to other material weaknesses identified by management, resulting in the restatement of the client’s annual and interim consolidated financial statements.
The Bottom Line:
The Johnsson Group provided a highly skilled technical resource to assist the company with the review and enhancement of existing key accounting policies and processes, and the creation of new procedures in order to remediate the reported material weaknesses. Additionally, The Johnsson Group assisted in improving the design and operating effectiveness of related controls and processes. As a result of the above efforts, the client’s management and external auditors concluded that the control deficiencies associated with insufficient personnel and accounting policies and procedures no longer constituted a material weakness for the current annual reporting period, and the documented policies will enable future sustainability of the remediated state.
