Business advisory

Business advisory

Advisory work is for boards, owners and project sponsors who need a clear-eyed view of the numbers they are using to make decisions. It is not a substitute for an audit, and it is not a bookkeeping service. It is focused, time-bound analysis of a financial question you already have.

Typical assignments include a review of budgets and cash-flow forecasts, a health check of the finance function, a readiness review before a lending or investment process, and a structured look at the risks and reporting gaps that a board should be aware of. The work is evidence-led, in the same spirit as our audit practice.

Where a deeper investigation of suspected irregularity is required, we can scope a targeted review of records and controls, and we will be direct if the matter should also involve legal counsel or a specialist forensic team. Independence rules are considered before we accept advisory work for an audit client.

Who it is for

This service is for owners, boards, management teams and project sponsors who want an independent reading of a budget, a forecast, a finance function or a reporting pack, without necessarily commissioning a full statutory audit.

• Boards and owners reviewing budgets, cash flow or management information
• Management teams preparing for a lender, investor or due-diligence process
• Organizations that want a health check of their finance function and close process
• Sponsors who need a structured view of reporting or control risks on a project

What is included

• A clearly written scope and a short list of questions the work is meant to answer
• Review of budgets, forecasts, management accounts or the finance-function process, as agreed
• Identification of gaps, inconsistencies and risks in the information you are using
• Practical recommendations, ranked so that it is clear what should be done first
• A discussion of findings with the people who commissioned the work

What you receive

• A written report or memorandum of findings and recommendations
• Supporting schedules or illustrations where they help to make a point
• A closing discussion so that the report is understood, not only received

Why it matters

Decisions taken on a forecast that does not hang together, or on a finance function that cannot close the books, are decisions taken on weak ground. An independent review, done before the deadline or the fundraising, is usually the less costly moment to find the problems.

We keep advisory work tightly scoped so that you know what you are commissioning and what you will receive. The tone is the same as the rest of our practice: independent, written, and careful about the limits of the assignment.

Risk advisory

On request we will review the way an organization identifies and reports financial and operational risks, or we will examine a particular area of concern — for example revenue leakage, procurement, or the controls around cash and related parties. The product is a set of observations and recommended actions, not a formal audit opinion.

How we work

Whether the engagement is a statutory audit or another assignment, we follow a clear sequence so that both teams know what happens next.

• Planning: Every engagement begins with planning. We take time to understand the entity or project, the applicable reporting framework, the people who will rely on the report, and the dates that matter to the board, lenders or funders. Scope, responsibilities and a realistic timetable are agreed in writing before detailed testing begins. We also agree the information we will need from management, and the points at which we will update you as work progresses. Good planning reduces last-minute pressure and helps both teams work in an orderly way.
• Risk assessment: Once we understand the entity, we assess the risks of material misstatement in the financial statements or, for a project review, in the expenditure and compliance areas covered by the terms of reference. This includes considering the business and its environment, the design of relevant internal controls, and areas that typically require judgment — such as revenue recognition, estimates, related-party transactions and going concern. The audit or review plan is then focused on those risks, so effort is concentrated where it will make the most difference rather than spread thinly across every account.
• Fieldwork: Fieldwork is the stage at which we obtain the evidence that will support our report. Depending on the engagement, this may include inquiry of management, inspection of documents, analytical procedures, confirmations, observation and substantive testing of transactions and balances. We work as far as possible from records that are already organized, and we raise questions and interim findings as they arise so that surprises are dealt with during the assignment, not in the final week. Fieldwork may take place at your premises, at our office in New York, or through a combination of on-site and remote work, agreed during planning.
• Reporting: When testing is complete, we evaluate the evidence as a whole, form our conclusions and discuss significant findings with management and, where appropriate, those charged with governance. For a statutory audit, the formal deliverable is the independent auditor’s report on the financial statements, usually accompanied by a management letter that records control observations and recommendations. For project or special-purpose work, we issue the report format required by the funder or the agreed terms of reference. We aim to explain our findings in clear language, so the report is useful as well as compliant.
• Follow-up: Issuing the report is not the end of a useful engagement. We walk management through the observations in the management letter or project report, distinguish between matters that need prompt attention and those that can be planned into the next cycle, and remain available to clarify our findings. Where we are reappointed, lessons from the current period inform planning for the next one — including information requests, cutoff procedures and any control improvements you have made. Follow-up is practical: the aim is a clearer file, fewer recurring adjustments, and a more orderly engagement the next time around.