Mastering the Restatement Process with Finance Experts.

At A Glance

Company Type: Enterprise, Public

Industry: Benefits Administration

Solution Area: Financial Statement Restatement

About The Client

Two decades after its founding, a benefits administrator with $500 million in revenue and 2,000 employees hit a big snag when an error in its financial statements came to light.  

Once such an error is found, the SEC clock starts ticking.

Challenge

A benefits administrator made a troublesome discovery: two years’ worth of financial statements needed to be restated because of errors. The detection led to a nine month-long effort and required more than 300 correcting journal entries in order to issue new, audited financial statements within the SEC deadline.

While the restatement process can be incredibly complicated to begin with, this company experienced turnover during this time, with departing key executives, turnover in the accounting team, and the replacement of their external audit firm. The pressure was on to be timely and thorough so that the re-issued information would meet the auditor’s and the SEC’s expectations.

Solution

• RoseRyan tracked and managed the entire restatement process
• Our finance aces assisted with verification and correction of all accounts, and developed a template to manually track the ongoing restatement impact to the financial statements
• We assisted with completing amended SEC filings, including multiple, simultaneous quarterly filings

Results

• Met SEC deadline for restated financials
• Assessed Sarbanes Oxley controls
• Audit-ready documentation for restated journal entries
• Support during the entire process
• Expert training on software, SEC filings
• Coverage of departed finance employees

“ZRG’s finance professionals were a critical resource in assisting the company through the financial restatement process. We relied on their technical and financial reporting expertise to work with our team and auditors to navigate through the reporting, analysis and justification of literally hundreds of adjusting journal entries. They were instrumental for getting the project completed on time.”

- VP of Accounting

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