Using Workiva for auditor-accepted 10-Q/10-K tie-outs
En avantHas anyone successfully used Workiva to complete a 10-Q or 10-K tie-out that was accepted by their external auditors and fully replaced a manual tie-out process?
Our current process involves printing a physical copy of the filing and manually adding annotations and source references next to the applicable amounts. This allows us to clearly identify discrepancies and place explanatory annotations directly next to the affected numbers. All source documents are maintained outside of Workiva in our shared folders, in case that context is helpful.
We are exploring whether the tie-out can be completed and documented directly in Workiva in an equally auditor-friendly manner that could replace, rather than supplement, the manual tie-out. So far, I have only been able to use it to supplement the manual process.
If your auditors have accepted a Workiva-based tie-out as a replacement for the manual process, I would appreciate any insight into your process, including:
- How annotations or source references are documented
- How supporting workpapers are linked or retained
- How discrepancies, recalculations, and exceptions are identified
- How reviewer sign-off is documented
- What final documentation is provided to the auditors
- Any challenges encountered in obtaining auditor acceptance
Thank you in advance for any insight or best practices you can share.
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I give the auditors no more than I would give an internal reviewer. All my tables link back to the workbook, and any text numbers are also in the workbook and labeled. My TBs are in my workbook. Anything that is from the TB or can be calculated from the TB is done in the workbook. Anything that is supported by another file has the file name next to it (or a letter with a reference or something similar). All my support files are saved in a set of folders organized by section/footnote. Alternatively, I'm currently working on bringing in the support using the attachment feature. My auditors get a downloaded workbook with all tabs, and I send over the support folders.
My reviewers just come in to Workiva and leave comments. The can see the workbook to see the file references, but they generally just go into the "Debt" folder for the Debt footnote and have no issue finding the support themselves. The attachment feature lets you mark up a PDF or a screenshot of an excel if you want to maintain the support in Workiva and export it all as one support file. I do have a sign-off tab in the workbook to document approval, but I'm currently adding tasks for each section so they can sign-off when the are done. I don't delete comments, just resolve, so if I need to show evidence of review, I can. I just don't provide all those comments.
I don't know who your auditors are or if there are just requirements you have internally, but I haven't maintained a ticked and tied PDF or printout in a very long time with several audit teams and multiple companies. For many numbers, by reviewers are actually going out and pulling the number independently. I think that catches more things like late updates or mistakes in filtering or bad report parameters better than reviewing a tick and tie would.
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Yes. We attach all support in the 10-Q/K, mark it up with the Markup functionality, then export the attachments with markup with who processed and where received with amounts noted that support the document markup and provide clean and markedup copies to the auditors. We rarely get any comments on this, and last time we got a comment I cannot remember it has been so long. We have been doing this for a couple years at least. We print nothing; all support is in Workiva so it is a comprehensive approach for us. Additionally, we utilize the Processes functionality for obtaining certification signoffs all the way to the CEO.
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