Aerospace Manufacturer Sought Audit Readiness and Carve-Out Audit Support
An aerospace company provides innovative, reliable solutions to the nation’s most sensitive and mission-critical programs and systems. It provides highly differentiated space, intelligence, cyber, defense, homeland security, and communications capabilities to the intelligence community, Department of Defense, and select federal agencies and commercial entities. Headquartered in Virginia, the company employs more than 3,000 people across the United States. and Canada. The company’s leadership needed a finance and accounting leader for audit readiness support and to identify and implement process improvements to ensure accuracy of financial statements.
Audit Readiness Support
Carve-Out Audit Support
ASC 606 Implementation
The aerospace manufacturer’s leadership needed a finance and accounting leader for audit readiness support and to identify and implement process improvements to ensure accuracy of financial statements.
Poor system implementation
Lack of sufficient accounting and finance personnel
No control over the financial records
Severe data quality issues
The A&D company initially engaged MorganFranklin to provide audit readiness support. However, due to challenges encountered, the project became a finance transformation project with the following key deliverables:
Reconciliations for all balance sheet accounts
Identification of errors and proposal of correcting entries
Identification of areas of improvement and proposal of those process improvements
Partnering with newly hired resources, such as controller, GL accounting manager, billing and accounts receivable staff, to establish strong processes to prevent future errors
MorganFranklin brought a deep understanding of the company’s business and challenges that resulted from the carve-out transaction. We coupled this knowledge with our strong technical expertise to deliver sustainable solutions and help the company achieve critical finance objectives.
Impact and Value
Working closely with the company’s management and new hires, MorganFranklin:
Successfully guided the company through on-time completion of their annual audit
Supported the carve-out audit of one of their subsidiaries
Implemented process improvements and strong controls, which allowed the company to independently integrate a newly acquired company