FINANCIAL CLOSE PROCESS QUESTIONNAIRE:

GENERATE FINANCIAL STATEMENTS AND

DISCLOSURES

PROCESS DESCRIPTION

Financial Reporting drafts the financial statements (FS) and disclosures based on information gathered from
various sources. The financial statements should come directly from the consolidations system. Information for
disclosures will come from a variety of company business units such as Corporate Accounting, Legal and Payroll.
Once drafted, Financial Reporting circulates the draft FS to a group of individuals, including the company
executives, board of directors, audit committee, disclosure committee and controllers, for review and approval.
The statements are ready for filing once the draft is approved.

KEY RISKS

 Financial statements and disclosures are inaccurate.

 Financial statements and disclosures are incomplete.
 Financial statements and disclosures are not filed with the SEC timely.
 Financial statements and disclosures are not supported.
 Financial statements and disclosures do not tie to the system of record.

EXPECTED KEY CONTROLS

 Financial Reporting researches new SEC Guidelines (GAAP, FASB, EITF, etc.) and determines whether the
company has to create new disclosures and/or update accounting procedures.
 Filing deadlines are noted on a closing or financial reporting calendar.
 Financial Reporting uses a standard template to prepare the financial statements and disclosures.
 Financial Reporting ties the draft financial statements and disclosures to the system of record.
 Financial statements and disclosures are supported by workpaper documentation.
 Financial statements and disclosures are reviewed by (List the Titles of Reviewers, e.g., President, Vice
President, CFO, Controllers, Board of Directors, Audit Committee, Disclosure Committee, etc.).
 Financial Reporting uses an SEC disclosures checklist to verify that necessary disclosures are included in the
financial statements.

QUESTIONS TO ASK

Describe the process to generate financial statements and disclosures. Be sure to cover the questions below.
 Who is responsible for generating the FS and disclosures?
 Who has access to the information needed to generate the FS and disclosures?

1 Source: www.knowledgeleader.com
 Does Financial Reporting have a calendar of key deadlines? If so, does it include financial reporting
deadlines?
 Does Financial Reporting have someone on staff to review SEC guidelines for new pronouncements? Does
Financial Reporting or HQ have an accounting research person who can research technical
accounting/disclosure issues?
 Where does the information for the FS and disclosures come from? (Be specific.)
 Does Financial Reporting validate this information in any way (e.g., tie back to trial balance)?

2 Source: www.knowledgeleader.com