Navigating an audit isn’t everyone’s favorite task, but having experienced both sides—auditor and client—I’ve seen how perspectives differ. However, an audit can offer more than a clean opinion. Here are key considerations as year-end approaches:
- Understand Requirements: Ensure compliance with investor, creditor, and other contracted requirements, especially if you’ve received government contracts or grants. This could entail a Single Audit.
- Learn From Past Audits: Reflect on prior audits to dodge repeat issues and implement recommendations for a smoother upcoming audit.
- Strengthen Internal Controls: Continually assess and address gaps, especially during month-end closes, maintaining a proactive stance.
- Summarize Your Year: Highlight the year’s financial story to the audit team. Preparing together ensures organized documentation for major themes.
- Take Proactive Steps: Complete checklists by December’s end. This leaves room for a thorough submission to auditors, saving time and hassle later.
- Exercise Patience: Expect new audit staff and possibly revisiting past discussions. Understand the industry-wide staff shortage; firms strive for efficiency despite limited resources.