Case Study | IPO Readiness
When material weaknesses hit the wallet.
An tech-based healthcare payer in NYC was struggling to remediate the material weaknesses (MW) in their IT general controls, jeopardizing customer data as well as their stock value after an IPO.
The Stakes: Customers and value on the line
- Customer data was at risk because of material weaknesses.
- Just two years after their IPO, investors were pressuring the company to remediate quickly.
- The company’s audit fees had increased significantly.
How we helped: A proven playbook
We tailored our time-tested remediation playbook to the client, focusing on:
- Planning – Set milestones, assess resources, communicate effectively with stakeholders, re-evaluate the system landscape to reduce the scope of the MW, and investigate the nature of the deficiency and its root cause.
- Design – Developed new remediations, designed and documented new controls, and tested them before implementation.
- Implementation – Executed the design changes, trained staff, and established monitoring controls to avoid this issue in the future.
The outcome: Trust back on the rise
- 40% reduction in remediation time (most MW projects take at least a year; AdviseUp did it six months).
- Stock prices rebounded and stakeholder trust improved.
- Lower audit costs in year two.
