{"id":907,"date":"2019-01-02T16:10:08","date_gmt":"2019-01-02T16:10:08","guid":{"rendered":"https:\/\/www.excelsisaccounting.com\/blog\/?p=907"},"modified":"2019-01-02T16:10:09","modified_gmt":"2019-01-02T16:10:09","slug":"conducting-an-effective-post-ma-audit","status":"publish","type":"post","link":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/2019\/01\/02\/conducting-an-effective-post-ma-audit\/","title":{"rendered":"Conducting an effective post-M&A audit"},"content":{"rendered":"

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Prepare the audit team<\/p>\n

It\u2019s important to notify your audit team about M&A plans long before a transaction takes place \u2014 even if there\u2019s still a chance the deal might fall through. This gives the audit team time to pull specialists together who can help you generate timely, accurate postacquisition financial statements.<\/p>\n

For example, you\u2019ll need someone with experience applying the business combination rules under U.S. Generally Accepted Accounting Principles (GAAP) and tax experts who know the rules for reporting different types of deal structures under today\u2019s federal and state tax rules. Likewise, if you\u2019re acquiring a company that uses different accounting systems, you\u2019ll need someone who\u2019s familiar with the acquired company\u2019s software, especially if it\u2019s no longer supported by the vendor.<\/p>\n

Anticipate auditor needs<\/p>\n

Even if your team of specialists has been assembled in advance, once you\u2019ve merged, expect audit fieldwork to take more time than usual. The auditors will review documents associated with the merger, such as due diligence workpapers and legal documents governing the purchase. They\u2019ll also ask to review prior financial statements and audit reports for the acquired company.<\/p>\n

The audit partner might even ask to review board minutes discussing the acquisition, as well as minutes from meetings conducted by the team responsible for the integration of the newly acquired entity.<\/p>\n

Documents don\u2019t tell the full story, however. The audit team will interview key members of your team, such as accounting personnel and members of the due diligence team. To streamline the process, designate an employee to serve as the audit liaison. He or she will be the primary point of contact to gather your auditor\u2019s requests for information and access to company employees and executives.<\/p>\n

M&As provide opportunities to enhance your company\u2019s value. But it\u2019s hard to gauge the relative success of a transaction without reliable, timely financial statements. Our auditors can help you allocate the purchase price to acquired assets and liabilities and otherwise report combined financial results in accordance with U.S. GAAP.<\/p>\n

\u00a9 2018<\/p>\n

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