How do you communicate your findings and recommendations to clients, and stakeholders (e.g. the external auditor)? As mentioned above, it is critical to communicate with all stakeholders frequently. In most situations, that communication will be a live discussion on a zoom call and may involve sharing some applicable company documents. Often the ultimate client is the Audit Committee, and we would expect to brief the full committee regularly, with more frequent updates for the Chair. Working with counsel, we typically have fulsome discussions with the Audit Committee about our progress, estimated completion schedule, what we are finding and the likely nature of required remediation, if applicable. After the initial meeting to introduce the forensic team to the external auditor, there will likely be a lot of interaction as the facts are developed. The level of interaction will depend on the nature of the whistleblower allegations that we determine to have substance. Sometimes, the allegations are wholly immaterial or do not have merit and the external auditors will want to understand the work that was done and have the company explain its determination and everyone moves on. When you have what appears to be material allegations that have substance and perhaps may implicate senior management, then I would anticipate extensive interaction with the audit team and a lot of requests for information that counsel will need to navigate. Ultimately, it is always important to keep the auditor “in the tent” as if there are material issues, the company will need to work towards getting the financial statements restated and filed as promptly as possible. Keeping the auditor up to date as facts develop and giving them time to analyze and reflect on what they feel they need to do is the best way to get the company beyond the investigative challenge and have its financial statements filed. 34 LAWYER MONTHLY NOVEMBER 2023 Ultimately, it is always important to keep the auditor “in the tent” as if there are material issues, the company will need to work towards getting the financial statements restated and filed as promptly as possible.
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