Leading Healthcare Franchise Overcomes Audit Challenges, Achieves On-Time Compliance with Bridgepoint’s Technical Accounting Expertise
Before Bridgepoint:
- Delayed audit completions for 2022 and 2023
- Inconsistent and non-standard workpapers
- Internal team lacked audit experience and technical accounting expertise
- Previous consulting efforts failed to address technical accounting challenges
- Risk of non-compliance with PE firm deadlines
After Bridgepoint:
- Timely and successful completion of 2022 and 2023 audits
- Well-structured and industry-standard workpapers
- Comprehensive audit readiness templates and technical memos for future use
- Streamlined audit process, reducing costs and audit time
- Increased investor and lender confidence with on-time compliance
Project Overview
A leading healthcare franchise organization engaged Bridgepoint to provide audit readiness and financial reporting support to ensure compliance with strict deadlines set by their private equity firm.
Bridgepoint was selected by the client due to our deep expertise in technical accounting and proven ability to provide structured, effective audit readiness and support solutions.
Business Challenge
The client, operating under a tight deadline from its PE firm, was required to complete its 2023 audit and finalize its 2022 audit, both of which had been delayed due to technical accounting challenges.
The internal team, while highly competent, lacked audit experience and knowledge of best practices. Previous consulting efforts to complete the audits had been ineffective, leading to further delays and complications.
Additionally, the client’s auditing firm encountered difficulties when auditing the 2022 workpapers due to inconsistencies and non-standard formats that required a complete rework before moving forward.
With a hard deadline and limited internal resources, the client needed expert support to produce industry-standard workpapers, author financial statements, and resolve technical accounting issues.
Approach
Bridgepoint provided a comprehensive, multi-phased solution to address the client’s audit readiness needs:
Phase 1: Audit Readiness Preparation
- Developed new workpaper templates, including enhanced roll-forward schedules for fixed assets, intangible assets, and leases.
- Created summary schedules to provide clarity and streamline audit reviews.
- Addressed technical issues with guidance and published memos on complex topics, including Revenue Recognition (ASC 606) and ASU 2016-13 Financial Instruments.
Phase 2: Financial Statement Preparation
- Authored and finalized the 2022 and 2023 financial statements, ensuring compliance with GAAP standards.
- Completed the GAAP checklists and submitted workpapers through the auditing firm’s portal, aligning documentation for seamless audit completion.
Phase 3: Ongoing Coordination and Communication
- Facilitated weekly status meetings between the client, the auditing firm, and Bridgepoint teams to ensure all parties were aligned and challenges were resolved promptly.
- Provided hands-on project management and technical support to keep the audit on track and meet the 2024 deadline.
Results
Bridgepoint’s strategic audit readiness and financial reporting support enabled the client to successfully complete its 2022 and 2023 audits by the PE-imposed deadline.
After engaging Bridgepoint, the client also received the following benefits:
- On-Time Audit Completion: Met the critical May 31, 2024, deadline, allowing the client to maintain compliance with PE requirements and strengthen relationships with investors and lenders.
- Cost Savings and Reduced Audit Time: The client’s auditing firm was able to streamline the audit process due to the well-prepared and organized workpapers, ultimately reducing audit fees and minimizing rework time.
- Efficiency Gains: The project saved approximately 937 consultant hours, which would have been exponentially higher if the internal team attempted to handle complex technical memos and workpaper preparations.
- Long-Term Impact: The client now has comprehensive audit templates, technical memos, and a structured audit process that can be utilized in future audits, saving time and effort in subsequent years.
- Enhanced Investor Confidence: The successful and timely completion of the audits enabled the client to secure additional funding and continue scaling operations with increased investor and lender confidence.
This project underscores Bridgepoint’s ability to provide critical audit and financial reporting support, helping clients navigate complex challenges and meet stringent compliance deadlines.
Services Provided