EY’s Financial Statement Close Process (FSCP) is generally considered an additional service rather than an integral part of a standard Audit. Audit services are primarily concerned with examining and providing assurance on a company’s financial statements, ensuring they are free from material misstatement and prepared in accordance with the relevant financial reporting framework. This involves evaluating the existence, completeness, valuation, and disclosure of assets, liabilities, income, and expenses.
The FSCP, on the other hand, is typically an advisory or ancillary service designed to help organizations improve the efficiency, accuracy, and timeliness of their financial statement closing process. It often involves assessing the current closing process, identifying inefficiencies or control weaknesses, and recommending improvements or best practices to optimize the process. This might include areas such as enhancing internal controls, streamlining workflows, or implementing new technologies.
While FSCP can provide valuable insights and improvements, it does not replace the need for a formal Audit, nor is it intrinsically part of the audit process performed to provide an opinion on the financial statements. However, improvements resulting from FSCP can indirectly contribute to a more efficient audit process by reducing errors and improving the reliability of financial data.
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