The small team of internal auditors wanted the luxury of time to tackle SOX compliance process improvements and operational audit work, while the SEC reporting team was frustrated by the inefficiency of working with desktop-based software.
- Streamlined productivity in compliance, shaving months from their process
- Improved collaboration on documents with external auditors
- Nearly 70% increase in reliance by external audit, saving money on audit fees
- Increased connectivity between teams, improved data confidence, and reduced risk of error
- SOX Compliance
Working efficiently did not come easily for the internal audit team at ZAGG Inc, an industry leader in mobile device enhancements and accessories. They were stuck manually entering information in documents and charts for three regions across the globe. And, with 55 control owners and 450 controls, they did not have the time or resources to focus on process improvements that would make their jobs easier.
McKay Bates, Internal Audit Manager at ZAGG, has a small team of internal auditors and getting the work done accurately is critical. Needing a way to boost productivity, they looked to Workiva solutions for their Sarbanes-Oxley (SOX) compliance and internal controls.
"We had no time to do anything else besides SOX auditing. We'd always talk about doing operational audits and significant process improvements, but with all the manual documentation, there wasn't any time," he said.
McKay was sold on Workiva when he learned about its linking functionality, which opened the door to a universe of connected compliance documentation. Users can update information at the source, and it automatically ripples out across all connected documents, spreadsheets, and presentations. By connecting flowcharts, certifications, and other critical reports in one centralized system, his team's work stays consistent.
Thanks to their automated, connected process, his internal audit team collaborates effortlessly and can isolate exactly where data originated and how it was calculated.
"The linking functionality has been a huge time-saver for us," McKay said. "The ability to update a control in one spot and have that flow to different documentation has saved us months of time every year."
Now, the internal audit team is exponentially growing in efficiency. "It allowed us a lot of time to start doing process improvements and operational audits that we just did not have time for in the past," he said.
ZAGG has also implemented Workiva solutions in other areas, including SEC reporting, delivering unparalleled connectivity between the previously siloed teams. When both teams use the same tools, said McKay, data can be easily utilized throughout the company. And, when that data changes, there is no reformatting of major documents and presentations—all information is effortlessly updated across teams.
"I feel better about the numbers. There's a lot of risk with reporting, and you want to make sure you do things right. Workiva reduces that risk," said Eric Greene, Manager of Technical Accounting and SEC Reporting.
McKay's push for connectivity went beyond internal teams. With flexible permissions, he gives his external auditors viewing permissions, so they can stay informed about changes. As a result, the team dramatically transformed the way they work with their external audit team.
"We increased external audit's reliance by nearly 70%," said McKay. "It was significant, and that was 100% because of the ease of access with Workiva. This has created considerable savings in our external audit fees."
The company found more ways to connect their people, processes, and data using Workiva solutions than originally anticipated—and they aren't stopping. Eric envisions a fully automated, widely connected process where information flows through his reports, memos, and filings, and he can sit back knowing it is done right.
"ZAGG has implemented so many great things with Workiva, but we have so much room to grow," Eric said.