An audit is a systematic and independent examination of the financial records, systems, and operations of an organization or individual to determine whether they are complete, accurate, and in compliance with applicable laws, regulations, and accounting standards. 

Audits can be performed by external auditors, independent of the organization being audited, or by internal auditors who the organization employs. An audit’s primary objective is to assure stakeholders, such as investors, creditors, and regulators, that the audited entity’s financial statements and other disclosures are reliable and free from material misstatement. The audit process typically involves planning, fieldwork, reporting, and follow-up activities.

Whether it’s an internal, external, or even an IRS audit, getting ready for one can be a long and exhausting process. It’s essential to its success that the team goes into it with an open mind and flexibility to adapt to unexpected changes or challenges during the audit process. It may require adjusting the audit plan or approach to ensure that all necessary areas are covered and that your team works together to ensure a smooth process. 

To help with some of that, we’ve selected three simple steps to keep your audit process under control.

1. Organize your financial records: 

One of the key parts of an audit is reviewing financial records, including income statements, balance sheets, and cash flow statements. Ensure all your records are up-to-date and in good order before the audit begins. 

By doing that you minimize delays and reduce the chance of errors.

2. Review your internal controls:

Internal controls are the policies and procedures you have in place to ensure that your financial records are accurate and that your business complies with relevant laws and regulations. Take some time to review your internal controls and make any necessary updates or improvements before the audit. 

It can help demonstrate to the auditors that you take your financial reporting seriously and are committed to maintaining accurate records.

3. Prepare for potential questions: 

During the audit, the auditors may ask questions about your financial records, internal controls, and other aspects of your business –including that $10 charge from Amazon!  Take some time to think about the types of questions the auditors might ask and prepare your answers beforehand. 

It will ensure that you can provide clear and accurate information during the audit, which can help the process go more smoothly.

If you are looking for help with your company’s audit, our team of experienced CFOs can provide you with the financial expertise you need to ensure success. With our deep understanding of accounting principles and financial reporting requirements, we can help you prepare for the audit, identify potential areas of concern, and ensure that your financial statements are accurate and compliant with accounting standards. 

Contact us today to learn more about how Vanreusel Ventures can help you wrangle the auditors.

Here is a podcast about this very topic.