Publicly traded companies must obtain a PCAOB audit to ensure compliance with the Securities and Exchange Commission (SEC). Preparing for this audit can be challenging, as there are several documents your auditing professional will need to complete the audit.
Outsourcing your accounting workflow to qualified professionals specializing in audit preparedness can help ensure your company is in good shape for your PCAOB audit.
For this post, we’re sharing insights from Maria Sanjurjo, CPA, Partner at AD Advisors, LLC, Partner at Outsource Dimensions, to help explain the steps to ensure a successful audit and discuss why you should consider outsourcing audit preparedness to qualified professionals.
Audit Preparedness: How to Ensure a Successful PCAOB Audit
It’s wise to prepare for your PCAOB audit beforehand. Sanjurjo suggests that audit preparedness isn’t just about compliance but efficiency. “By implementing structured audit readiness processes, businesses can avoid costly delays and confidently navigate PCAOB audits.”
Although PCAOB audits are complex, there are steps you can take to simplify the process and ensure a successful audit. As you review these steps, consider partnering with an outsourced accounting firm to help you streamline preparing for your audit.
1. Organize Financial Records
There is nothing worse than sorting through a pile of papers and digital documents and trying to put them into an organized system. Instead of waiting until you are covered with records, consider creating an organized financial records system.
Committing to organizing and maintaining PCAOB and generally accepted accounting principles (GAAP) standards helps ensure accuracy and compliance. If you need help or guidance creating an organized system, an outsourced accounting professional can assist you. The professional can focus on the task, giving you more time to manage other aspects of your business.
2. Strengthen Internal Controls
Internal controls are proactive measures to prevent future issues within your audits. If your internal controls are inaccurate, you’ll likely encounter misstatements and deficiencies in your PCAOB audit, which can cost you serious money in the long run.
Taking the time to strengthen your internal controls is imperative to good financial reporting. If you’re short on time, an outsourced accounting professional can help evaluate and improve your internal controls, ensuring your records are as accurate as possible.
3. Prepare and Maintain Audit-Ready Financial Statements
There’s no way around it: an audit requires accurate financial statements. While you could theoretically wait until closer to time for your audit to prepare your financial statements, this is not a wise choice.
Sanjurjo does not recommend waiting until your audit to prepare. Sanjurjo mentioned, “A well-organized audit preparation process helps companies strengthen financial controls and improve long-term reporting accuracy, making audits a smooth and stress-free experience.”
Preparing your financial statements beforehand reduces stress and gives your team ample time to fix any mistakes your internal accounting team may find in your documentation. Fewer mistakes in your financial statements will result in fewer errors and deficiencies in your PCAB audit.
You can outsource preparing financial statements to an accounting professional as part of audit preparedness services.
Ensure Confidence and Compliance: Choose Outsource Dimensions
PCAOB audits can be stressful, especially if your company is unprepared for them. However, an audit doesn’t need to trigger an alarm. Instead, consider partnering with Outsource Dimensions to help maintain and ensure accuracy within your records.
As Sanjurjo says, “An audit should never be a fire drill. At Outsource Dimensions, we help businesses establish proactive processes to ensure they are always audit-ready, reducing last-minute chaos and ensuring compliance with PCAOB standards.”
Contact Outsource Dimensions, a division of Assurance Dimensions, today to learn about our other outsourced accounting and advisory services.