Worried About an Upcoming Financial Statement Audit?

A third party may require a successful and growing small business to have any audit. What they really want is assurance that the financial statements provided by your business are reasonably accurate and free of any major oversight or material errors. This assurance generally comes in the form of audited financial statements.

What You Need to Know

When undergoing a financial statement audit, an accounting firm, called an "auditor" in this context, will come to the place of business and require full access to financial records. The auditor:

When the auditor is done reviewing your records, it will issue a formal report that expresses an opinion as to whether the financial statements are presented fairly, in all material aspects, within the applicable financial reporting framework.

What You Need to Do

The auditor's responsibility is to express an independent, objective opinion on the financial statements of a company. To that end, your business will be required to do the following:

If your records or accounting system aren't sufficiently accurate or complete, an audit can stretch out and even may cause serious problems when it comes time for the auditor to issue the report. Few accounting engagements you go through as a business owner will be as complex as a financial statement audit. Fortunately, there's a lot you can do in advance to set the stage for a successful audit.

Give us a call. We'll explain the details of an audit, how audit rules may apply to your business, and help you get prepared.