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International audit issues

Quincy Johnson's Profile

I do all the accounting for my company. When I was brought onboard the books were a mess but I've managed to clean up most of it. Our structure is a US Parent, a UK subsidiary, and a Swiss subsidiary. Our US Parent underwent an audit of our consolidated group in June of 2016 and is still being finalized (we're a private company). In September our UK subsidiary was required to have a statutory audit due to our size and in December the same thing for our Swiss company. The Swiss auditors are being ridiculous and I've spent 10x more time answering their questions than I did for our US audit. My question is: how does it work if the Swiss auditors want us to make adjusting journal entries? Would I give those to the US auditors to post? What if the US audit is closed? I know that ideally the audit of all entities would be coordinated and done at the same time but that obviously didn't happen. Thank you for any advice you can give.

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I would discuss this with my US Auditors. Obviously if the basis for the audit for the consolidated changed, the audit numbers would change.

It may just be a footnote, or it may be a review of the change and a reissue of the numbers.

I also would seek out a new auditor for the Swiss Company!

Quincy Johnson
Title: Controller
Company: QJ Inc
(Controller, QJ Inc) |

Thanks Wayne. Yes, our Swiss auditors are a joke, they were recommended to us by the company that helped set us up over here. We will be putting it out for bid next year.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I would also talk with the managing partner and set expectations going forward or cancel the contract and find another suitor today.

If you use a large CPA firm in the US that should have some recommendations.

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