How to Prepare For An Audit
If an audit is in your future, it is essential to be prepared. An audit is an extensive process that involves reviewing an enormous amount of financial information, so getting organized ahead of time is a great idea.
Auditing may be a requirement for all publicly traded companies, or by lenders and investors of private companies, but it can also be a very useful review tool for any business – regardless of their size and years in operation. While they’ve gained a bit of a bad reputation over the years, if you are interested in learning the truth about your business’s finances, there is no reason to fear audits.
Here are a few ways to prepare for an audit.
Organize Important Documents
Business information such as investments, debt, cash flow, and more will be looked over during the auditing process. Previous audits will also be reviewed.
To help the process run smoothly, consider organizing all critical information into files on the company computer for easy access. This allows data to be easily sorted if need be by the type of document or the date it was created, and simplifies the process to securely transmit the information to your auditor.
Scrambling at the last minute to gather all necessary information for an audit can be stressful, so consider planning throughout the year. Setting tasks for yourself and your employees to run reports or organize financial information quarterly can help ensure that your company is always prepared for an audit.
Assess Your Business
Have there been any significant changes in the day-to-day process of the business? For instance, did your company receive a grant or discontinue any services? Making a note of all major changes allows for reporting to be done quickly and accurately and can help clear up accounting questions.
Don’t Be Afraid To Ask Questions
Whether this is the businesses’ first audit or its fifth, it is always okay to ask questions at any point in the auditing process. When speaking with an auditor before fieldwork begins, be sure to ask all questions to ensure that the process goes smoothly. Clarifying all of your important questions before fieldwork is also helpful to the auditor, and most will encourage you to communicate with them as much as possible.
When the auditor starts fieldwork, be sure to be available and present if the auditor has questions about the business. Try to avoid scheduling meetings before and after the auditor will be working so that the attention is solely focused on completing the audit promptly and accurately.
At Taurus CPA Solutions, our auditing services give you the insight you need and deserve to boost your organization’s operational efficiency and improve your bottom line.
Our audits consist of systematic examinations of financial statements, internal controls, communication with third parties, and more. Audit findings are presented in a detailed report explaining whether your company’s financial statements are precise and void of falsehoods.