Case Study Fourteen: Document Procedures, Risks, and Controls for a Manufacturing Division of a Large Public Company. Assist with Accounting for Carve Out Transaction

Summary Level

A large public company helicopter manufacturing division with limited accounting and compliance personnel was required by its corporate headquarters to document procedures for business processes and to identify financial reporting risks and controls in those processes. At the same time, management required assistance in carving out a line of business for a sale transaction.

Details

A large public company helicopter manufacturing division with limited accounting and compliance personnel was required by its corporate headquarters to document procedures for business processes and to identify financial reporting risks and controls in those processes. At the same time, management required assistance in carving out a line of business for a sale transaction.

We were engaged to assist management with review and design effectiveness of controls for various business cycles at the location. We also were engaged to assist this division with creating schedules and detailed accounting records to be included in a divestiture and business carve-out transaction.

We provided management with documentation of procedures and flowcharts in key business process areas. We identified risks and key controls for each of the process areas, which allowed management to meet certain deadlines established at corporate headquarters. We provided required planning, schedules, and allocations, whicih allowed management to carve out operations specific to a line of business offered for sale. Utilizing these results, management was able to negotiate in a timely manner with various companies interested in purchasing the operations.