Client profile
The client is a large company operating in the music industry and forming part of an international capital group. Although accounting within the group is managed centrally, there is often a need for support in interpreting and applying Polish regulatory requirements, which the international team may not be fully familiar with. For this reason, the client decided to cooperate with the Grant Thornton Outsourcing Department.
A prolonged audit in a company operating in the music industry
At the start of the cooperation, the client was struggling with a prolonged audit and was seeking support in verifying the correctness of documentation and correcting potential accounting errors, which would allow the long‑running audit process to be completed.
In addition, the company was facing ongoing obligations that required a high level of knowledge of Polish regulations and accounting expertise. The most significant challenges included the preparation of consolidated financial statements and the development of their key components, such as the statement of changes in equity and the cash flow statement.
Proposed and implemented solutions in the music industry company
The cooperation with the client began with an immediate response to the crisis related to the need to successfully conclude the ongoing audit. After correcting errors and helping the client out of a difficult situation, the company developed trust in the Grant Thornton team and decided to establish ongoing cooperation for accounting support. These activities focus on verifying compliance with Polish regulations.
In order to organise processes and clearly define the scope of cooperation, we carried out so‑called account mapping together with the client. This involved a detailed analysis of how individual transactions are recorded, how they are presented in accounting accounts, and how they are expected to be reflected in the financial statements.
In addition, together with the client, we identified which data and reports needed to be extracted from the system to ensure the correct preparation of information required for the notes to the financial statements.
Based on this, the team prepared a set of detailed instructions and working papers specifying how individual items should be classified, recorded, and presented.
As a result, the client received support, among others, in:
- preparation of consolidated financial statements,
- preparation of separate (stand‑alone) financial statements,
- ensuring consistency between accounting systems and financial reporting,
- organising accounting processes and increasing the transparency of financial data presentation.
Benefits for the Client
The client gained much more than just a way out of the crisis situation caused by a long‑lasting, prolonged audit. They gained confidence that accounting processes in the Polish entity are conducted correctly. Ongoing support ensures that all regulatory changes are taken into account and that procedures remain compliant with applicable laws.
What should be done in the case of a prolonged financial audit?
In the case of a prolonged audit, it is crucial to immediately identify and correct accounting errors and organise documentation that is preventing the audit from being finalised.
What challenges are associated with preparing financial statements for a company belonging to a capital group?
Preparing financial statements within a capital group involves challenges resulting from the complexity of reporting and the need to maintain data consistency between the accounting system and group reporting.
What is account mapping?
Account mapping involves a detailed analysis and organisation of transaction recording, from initial posting, through presentation in accounts, to final inclusion in the financial statements.