Case Study Eleven: Audit Expertise and Resource for a Regional Water Company Case

Summary Level

A local public water company, with $77 million in revenue and $431 million in assets, acquired property and certain equipment pursuant to an acquisition agreement with a local municipality. Management required an independent auditor to perform steps to ensure certain aspects of the agreement were adhered to and reports provided were reliable.

Details

A regional public company water provider with $77 million in revenue and $431 million in assets acquired assets and certain equipment pursuant to an acquisition agreement with a local municipality. The water company services over 80,000 customers supplying in excess of 7.6 billion gallons of water per year with a storage capacity of 175 million gallons of water. Management required an independent auditor to perform steps to ensure certain aspects of the agreement were adhered to and reports provided were reliable.

We were engaged by the regional public company water provider’s Chief Financial Officer and Chief Operating Officer to obtain certain documents from a local municipality and verify the accuracy of reports provided through various on-site visits and inspection of key documents.

We provided satisfaction to management that documents and reports provided by the local municipality were correct, allowing management to continue negotiations and execute the purchase transaction. Management and the municipality obtained an independent perspective, which proved helpful in negotiations to both parties in the transaction.