There are various reasons for private audits of your financial statements. For example, you’ll need a completed audit to show compliance with regulatory requirements or apply for a loan. The thing is, even though companies take private company audits seriously, a big issue we often see is that they’re not ready when the audit starts.
Batul Abdulali, ACA, Principal at Assurance Dimensions, pointed out one of the biggest challenges before an engagement: “Being prepared for the audit. This can be prevented by understanding the scope of what is required in an audit engagement.” So, getting ready and knowing what the audit involves is key to smoothing out the process.
In this article, we hope to help you become better prepared for a third party audit of your financials so you can save time and money and rest easy during the engagement. Here are four steps you should follow to ensure it’s a smooth process.
Four Easy Steps to Simplify Private Audits of Financial Statements
1. Determine Your Point of Contact for the Audit
Before you gather your financial statements and supporting documents, you need to determine who in your organization will be the point of contact for the independent audit. This person will be responsible for working with the audit firm to ensure the audit is conducted on time and materials delivered to the audit team.
While several qualified people in your office may be eligible to be the point of contact, having too many people involved in an audit can lead to confusion. Simplify the process by choosing a leader to take on the responsibility of communication with your audit team.
2. Select a Qualified CPA Firm
While most accounting firms can conduct private audits of financial statements, take the time to research auditors before selecting an audit partner. You want to choose an auditor with industry experience who will work with you in the most efficient way possible.
That’s why at Assurance Dimensions, we provide remote auditing services with secure cloud-based software through Suralink. We value security, and we also value your time. Partnering with us means you’ll work with an experienced audit team to complete a private company effectively and efficiently.
3. Organize Your Records
You can make private audits of financial statements easier by gathering your required documentation before the audit begins. For a financial statement audit, you’ll need to provide your auditor with a copy of your balance sheet, income statement, cash flow statement, and equity statement. Your auditor may ask for other documents, too.
Preparing a record of your business statements before the audit begins ensures you’re not scrambling to find the required documentation later.
4. Document Your Existing Processes
Auditors must also look at your processes when auditing financial statements. Having a record of your existing processes, like your internal controls, financial reporting procedures, accounting policies, and documentation of transactions, helps the auditor to make sense of your financial statements.
Before you begin an audit engagement, ensure you have accurate documentation of your processes. Documenting and revising your processes during the audit can lead to confusion or, worse, an inaccurate audit that can cause significant trouble later on.
Your Firm for Private Audits of Financial Statements
Your independent audit doesn’t have to be a challenging process, and you can make it easier by preparing for your audit before it begins.
When you partner with Assurance Dimensions, you can rest assured that you receive over 75 years of industry experience. And no matter the format, in-person or remotely, our public accountants are ready to assist you through the auditing process.
Contact us today to learn about our audit and assurance services.
