Why a Post-Audit Review of Your Lease Accounting Process is Critical
The year-end audit is complete — but what happens next is just as important. One of the most valuable (and often overlooked) steps after your audit is conducting a post-audit review of your financial systems and processes, with a focus on lease accounting.
Why Lease Accounting Needs Special Attention
Under standards like ASC 842 and IFRS 16, lease accounting is more complex than ever. It is not just about recording leases correctly at inception – the ongoing management of modifications, reassessments, and reporting adds layers of complexity that auditors closely review. For companies still relying on spreadsheets or outdated systems, this complexity can result in:
- Missing data points or incorrect calculations
- Time-consuming reconciliations during month-end and year-end
- Audit adjustments and increased scrutiny from auditors
A post-audit review helps you pinpoint these process gaps and inefficiencies, ensuring your lease accounting is ready for the next audit — and for your day-to-day financial operations.
What a Post-Audit Review Should Cover
During the review, companies should assess:
- System Performance: Is your current lease accounting system providing accurate data and handling reassessments and modifications correctly?
- Compliance Risks: Are all leases properly classified, documented, and disclosed in line with ASC 842 or IFRS 16?
- Process Gaps: Are there manual workarounds or processes creating unnecessary risk or inefficiency?
- Technology Gaps: Are you relying on spreadsheets or legacy systems that slow down month-end close?
How Black Owl Can Help
At Black Owl Systems, we offer a no-obligation Lease Accounting Health Check as part of your post-audit review process. Our team of lease accounting experts will:
- Review your current lease accounting systems and processes
- Identify gaps or inefficiencies
- Provide clear, practical recommendations to improve accuracy, reduce compliance risk, and save time
Whether you are using spreadsheets, outdated software, or struggling to adapt your ERP to lease accounting, our health check gives you a clear path forward.
Take Action Now
The time immediately after your audit is the best time to assess and improve your processes — while issues are fresh and before they impact next year’s results.
Schedule your no-obligation Lease Accounting Health Check today.
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