Audit readiness
Audit Preparation and Audit Readiness Services
Audits do not go badly because the auditor is difficult. They go badly because the company is not ready, so the fieldwork turns into a document hunt and the fee grows with every unanswered request.
We prepare the company side of the audit: the schedules, reconciliations, support files and explanations the auditor will ask for, assembled before they arrive.
The problem
The cost of an audit is set before fieldwork starts
Auditors price and extend engagements based on how much work they have to do to get comfortable. Unreconciled accounts, missing support, and balances nobody can explain all convert directly into hours and adjustments.
The work is also disruptive internally. Requests land on the same people running the business, and the answers get produced under time pressure with no review.
Signs you may need this
- This is your first audit, or your first with a new firm
- Last year's audit ran long and produced a list of adjustments
- A lender, investor, surety or acquirer has requested audited statements
- Balances exist that nobody can currently support with documentation
- The prepared-by-client request list arrived and nothing is ready
- Prior year adjustments were never properly carried into the current file
What we do
How the work actually runs
01
Review the file against the request list
We work through the auditor's prepared-by-client list line by line and identify what exists, what is incomplete, and what has to be rebuilt.
02
Reconcile and support every material balance
Cash, receivables, inventory, fixed assets, accruals, debt and equity reconciled to independent support, with the reconciliation documented.
03
Rebuild the schedules
Fixed asset and depreciation rollforwards, debt amortization, accrual and prepaid schedules, revenue and cost cut-off testing support.
04
Resolve the known issues first
Errors and judgment areas are corrected and documented before fieldwork rather than negotiated as adjustments during it.
05
Support you through fieldwork
We respond to auditor requests, explain the accounting positions, and keep the request tracker current so nothing stalls.
Deliverables
What you receive
- Completed prepared-by-client schedule package
- Reconciliations with supporting documentation for material balances
- Fixed asset, debt, accrual and prepaid rollforwards
- Documented accounting positions for judgment areas
- Trial balance mapped to the statement presentation
- Open request tracker maintained through fieldwork
Outcome
What changes
Fieldwork runs against a prepared file instead of a search. Adjustments drop, questions get answered the same day, and the audit finishes closer to its original timeline and fee.
The same preparation also leaves you with a cleaner, better documented ledger for every other reader of the numbers.
Best suited to
- Companies facing a first-time audit or a change of audit firm
- Businesses with lender, surety, investor or grant audit requirements
- Private equity portfolio companies reporting to a sponsor
- Groups needing consolidated statements audited
Scope of practice
Small Business Accounting USA is not a CPA firm. We do not perform audits, reviews, compilations or other attest engagements, and we do not provide legal advice.
Audit readiness work is client-side preparation and support. Your independent audit firm retains sole responsibility for the audit and its opinion. Where tax matters arise, they are coordinated with credentialed U.S. tax professionals on our panel, including CPAs and Enrolled Agents.
FAQ
Frequently asked questions
Related services
Where clients usually go next
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Next step
Discuss Your Accounting
Send the auditor's request list and your audit date. We will tell you what is realistic.