A publicly traded research, technology, and consulting firm required an expedited "refresh" of of its existing revenue recognition policies in preparation for its year-end audit.
With a footprint across three continents and more than 5,000 customer organizations in healthcare and higher education, understanding the exact nature of revenue and its current recognition was difficult under a time crunch.
The firm engaged CrossCountry Consulting to perform a fast-tracked refresh of revenue recognition and deliver policy memos to inform to auditors.
Because limited documentation existed prior to the engagement, CrossCountry initially kicked-off the partnership by conducting multiple interviews with business and finance personnel throughout the organization to grasp:
- The nature of the revenue arrangements.
- How revenue was currently being recognized.
This information was then used to analyze current positions in accordance with relevant US GAAP revenue recognition guidance. Complex and judgmental areas were presented and discussed with the client.
Based on these discussions, CrossCountry's team of technical accounting and standards implementation experts prepared a comprehensive set of revenue recognition policy memos for the client, which covered all significant business units and revenue streams.
These policies were instrumental in assisting the auditors to successfully complete their audit procedures over revenue recognition. With CrossCountry's support, the client was able to complete its year-end audit in an efficient and timely manner.
Due to this successful engagement, CrossCountry continues to serve as the ongoing revenue recognition advisor and assists various other functions within the client’s finance organization.