International Operations Audit Delayed by More Than Just Time Zone

Problem

A middle-market company with operations in China had been working with an international accounting firm for their audit services. The CPA firm utilized their China-based location to perform certain audit procedures, but there were significant delays in receiving information from the China location and inaccuracies including incomplete information, significant financial variances, and arithmetic errors. While the US and China locations were employed at one firm, their service strategy was anything but seamless. This, among other hardships, impacted the audit and resulted in management seeking out a new service provider.

Solution

After an initial introductory meeting with management and prior to a formalized proposal process, Wolf & Company professionals coordinated with our international affiliate office in Hong Kong to design an audit plan for the company. Wolf established a reliable line of communication and determined the availability of resources and applicable deadlines for an audit completion. When the Wolf team presented the strategy for service at the proposal meeting, they were able to report that the resources were in place and ready to be deployed, and that an audit approach had been agreed upon. Templates and formats for deliverables were structured and accurate, a fair fee estimate had been determined, and deadlines were established and clearly communicated.

Result

Wolf was able to design an audit approach that was specific to the issues impacting the company. The information being provided from the international firm is complete and accurate, and there are no delays of receipt of this information. Further, lines of communication have improved and any matters requiring outreach to Wolf’s international affiliate are dealt with in real time. The client is pleased with the way audits have progressed these last two years, admitting “the audit coordination is seamless and we enjoy the benefit of working with one point-of-contact for all audit matters.”